According to court documents and statements made in court, in 2006, Jackson conspired with a New Haven-based real estate attorney and an East Hartford-based mortgage broker to defraud Mortgage Lender Network USA, Inc., a Florida corporation with offices in Middletown, through the purchase of Meriden residential property. Working with the attorney and mortgage broker, Jackson signed a loan application provided by the mortgage broker for a loan in the amount of 0,000. Both Jackson and the mortgage broker knew that application contained several material misrepresentations, including Jackson‘s true financial condition. The application also falsely represented the purchase price of the property, which was substantially less than reflected on the loan application; that the property was to be Jackson‘s primary residence, when it was not; Jackson‘s total liabilities, which were much higher than represented on the application, and that Jackson would provide approximately ,000 in cash at the loan closing.

On approximately July 21, 2008, as part of the scheduled loan closing, Mortgage Lender wired approximately 3,000 into the attorney’s trust account. At the closing, Jackson signed a HUD settlement statement, which was prepared by the attorney, that overstated the actual purchase price of the property by more than 0,000, and that stated that Jackson had made an earnest payment toward the purchase. In fact, Jackson had not made a payment. Instead, the attorney had made a payout to Jackson.

Judge Droney has scheduled sentencing for October 15, 2010, at which time Jackson faces a maximum term of imprisonment of five years and a fine of up to 0,000.

This case is being investigated by Federal Bureau of Investigation and the Connecticut State Police. The case is being prosecuted by Senior Litigation Counsel Christopher W. Schmeisser.

David B. Fein, United States for the District of Connecticut, announced the guilty plea. 

Mortgage Fraud Blog

Isaac Modert, DeWitt, Michigan, from Lansing, Michigan’s LCN Mortgage – Eight counts False Pretenses (,000 or more but less than ,000), two counts Using a Computer to Commit a Crime, one count witness tampering, one count Non-Sufficient Funds, two counts Credit Services Protection Act Violation, 56A District Court, Eaton. When he received word that his victim had filed a complaint with the Office of Attorney General, Modert offered the victim a four-wheel drive truck to induce her to drop the complaint. 

Benjamin Walcott, Grand Rapids, Michigan, from Lansing’s LCN Mortgage – One count False Pretenses (,000 or more but less than ,000), 56A District Court, Eaton County.
o Walcott, a registered sex-offender, is currently incarcerated in the Ionia County Jail after pleading guilty in May to one count of Working within a Student Safety Zone in violation of the Sex Offenders Registration Act, a one year misdemeanor, for coaching at a football camp on school grounds. 

Aaron Teachout, Charlotte, Michigan, from Lansing’s LCN Mortgage – One count False Pretenses (,000 or more but less than ,000). 56A District Court, Eaton.

LCN Mortgage, Lansing, Michigan - Eight counts False Pretenses (,000 or more but less than ,000), two counts Credit Services Protection Act Violation, 56A District Court, Eaton. 

Mobile Modification aka Notary Modification - Three counts Credit Services Protection Act Violation, 57th District Court, Allegan County. 

Tonya Raisbeck, Fennville, Michigan, from Fennville’s Mobile Modification (aka Notary Modification) – Three counts Credit Services Protection Act Violation, 57th District Court, Allegan County. One count Credit Services Protection Act Violation, 64B District Court, Montcalm.

The Modification Company aka The Modification Center, Livonia, Michigan - One count False Pretenses (,000 or more but less than ,000), One count Credit Services Protection Act Violation, 16th District Court, Wayne.

Guy Humeniuk, Livonia, Michigan, The Modification Company aka The Modification Center – One count False Pretenses (,000 or more but less than ,000), One count Credit Services Protection Act Violation, 16th District Court, Wayne.

Global Loan Modification, Commerce Twp., Michigan – One count False Pretenses (0 – ,000, Misdemeanor), One count Credit Services Protection Act Violation, 48th District Court, Oakland. 

Steven Barry Ruza (aka Steven Barry), West Bloomfield, Michigan, from Commerce Township’s Global Loan Modification – One count False Pretenses (0 – ,000, Misdemeanor), One count Credit Services Protection Act Violation, 48th District Court, Oakland. 

Flagstone Partners Inc., Southfield, Michigan - One count False Pretenses (,000 or more but less than ,000), One count Credit Services Protection Act Violation, 46th District Court, Oakland. 

 Kevin Nafso, West Bloomfield, Michigan, from Southfield’s Flagstone Partners – One count False Pretenses (,000 or more but less than ,000), One count Credit Services Protection Act Violation, 48th District Court, Oakland.

Home Rescue Corporation, Highland, Michigan - Three counts False Pretenses (,000 or more but less than ,000), Three counts Credit Services Protection Act Violation, 52-1 District Court, Oakland.

Chris Martin, Highland, Michigan, from Highland’s Home Rescue Corporation – Three counts False Pretenses (,000 or more but less than ,000), Three counts Credit Services Protection Act Violation, 52-1 District Court, Oakland.

Elite Mortgage Relief, Howell, Michigan – Two counts Credit Services -Protection Act Violation, 53rd District Court, Oakland.

Michelle Garbuschewki (aka Michelle Justice), Howell, Michigan, from Howell’s Elite Mortgage Relief – Two counts Credit Services Protection Act Violation, 53rd District Court, Oakland.

Lisa Joboulian, Northville, Michigan, from Howell’s Elite Mortgage Relief – Two counts Credit Services Protection Act Violation, 53rd District Court, Oakland County.

Legal Researchers, Southfield, Michigan - One count False Pretenses -(,000 or more but less than ,000), One count Credit Services Protection Act Violation, 46th District Court, Oakland.

Federal Modification, Westland, Michigan - One count False Pretenses -(,000 or more but less than ,000), One count Credit Services Protection Act Violation, 18th District Court, Wayne.

The above Michigan mortgage companies are accused of illegally charging homeowners facing foreclosure upfront fees for mortgage modification assistance. The defendants claimed they would help homeowners by working with their lenders in an attempt to modify the borrower’s mortgage. After paying the upfront fee, borrowers found that the companies made no real attempt to secure a modification and were subsequently unable to get their money back. Many of the victims lost their homes to foreclosure.

Several companies and individuals charged are accused of obtaining money through false statements to consumers. This charge is a five year felony. In addition several are accused of charging upfront fees before services were rendered, a violation of the Credit Services Protection Act, and with making misleading statements. Each of the charges carries a penalty of up to 90 days in jail and/or a fine of ,000 in addition to the requirement that the companies make full restitution to each of their victims. 

Attorney General Mike Cox announced the charges. Attorney General Cox has made prosecuting mortgage fraud a priority for his office. In 2008, Cox created a mortgage fraud unit, teaming with the Michigan State Police and other law enforcement agencies to tackle consumers’ complaints. Cox’s office has charged 46 people or companies with a mortgage fraud-related offense in the last 23 months alone.

Cox’s office also conducted several mortgage foreclosure forums to help families stay in their homes during these difficult times.

Cox reminds homeowners they can find foreclosure information on his website at http://www.Michigan.gov/avoidforeclosure. The website includes contact information for government agencies and debt counselors, and also offers tips for those facing foreclosure, including:

* Homeowners are never required to pay to speak with their lender or servicer.
* Homeowners do not need to pay for outside assistance. Free assistance with foreclosure issues can be found by calling the Michigan State Housing Development Authority at (866) 946-7432.
* If you do hire outside assistance, never pay up front for help with negotiating your loan or working with your servicer.

Cox urges any consumers who paid fees to the companies and individuals charged by his office, or any other mortgage modification company, for services that were not provided, to file a consumer complaint online with the Attorney General’s Consumer Protection Division at http://www.Michigan.gov/ag or contact them at (877) 765-8388 .

“These companies took advantage of struggling Michigan families trying to hold onto the American dream,” said Cox. 

A criminal charge is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.

Mortgage Fraud Blog

The indictment alleges that Kottage and Hathaway, who are married, conspired to commit wire fraud relating to a home on Fire Island, New York. Hathaway, a former attorney in Connecticut and New York, and Kottage purchased and financed the property in the name of Kottage‘s mother by filing false loan applications to Wells Fargo Home Mortgage. In each instance, Hathaway served as the closing attorney on behalf of Kottage‘s mother and Wells Fargo. The indictment further alleges that Hathaway subsequently purchased the property from Kottage‘s mother’s estate in his own name and, in so doing, made a materially false loan application to H&R Block Home Mortgage to obtain a separate mortgage. Rather than using the sale proceeds due and owing to Kottage‘s mother’s estate to pay off the outstanding loans issued by Wells Fargo, Kottage and Hathaway used those proceeds to pay off an obligation arising from a separate real estate transaction in which Hathaway served as the closing attorney for the seller. The losses resulting from this alleged conspiracy exceed 0,000.

The indictment further alleges that Kottage, Hathaway, and Dursoconspired to commit bank fraud by filing a materially false loan application to Washington Mutual to refinance a condominium in Hillsboro Beach, Florida. Durso served as the straw owner for the condo in order to obtain the fraudulent loan proceeds for the benefit of Kottage and Hathaway.

The indictment also charges Hathaway with tax evasion in 2005 and Durso with filing false tax returns from 2004 to 2008.

The indictment charges Kottage and Hathaway with two counts and Durso with one count of conspiracy, a charge that carries a maximum term of imprisonment of 30 years on each count. The indictment further charges Kottage and Hathaway with two counts of wire fraud, a charge that carries a maximum term of imprisonment of 30 years on each count. Kottage, Hathaway and Durso are each charged with one count of bank fraud, which carries a maximum term of imprisonment of 30 years. The one count of tax evasion against Hathaway carries a maximum term of imprisonment of five years, and the five counts of filing false tax returns against Durso carry a maximum term of imprisonment of three years, on each count.

David B. Fein, United States Attorney for the District of Connecticut, announced the charges. 

U.S. Attorney Fein stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

This case is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant United States Attorney David T. Huang.

In July 2009, the U.S. Attorney’s Office and the Federal Bureau of Investigation announced the formation of the Connecticut Mortgage Fraud Task Force to investigate and prosecute mortgage fraud cases and related financial crimes occurring in Connecticut. In addition to investigating past mortgage fraud schemes, the Task Force will focus on emerging crime trends that are associated with the growing tide of foreclosures, including foreclosure rescue schemes, and short sale schemes. Citizens are encouraged to report any suspected mortgage fraud activity by calling 203-333-3512 and requesting the Connecticut Mortgage Fraud Task Force, or by sending an email to ctmortgagefraud@ic.fbi.gov.

The Connecticut Mortgage Fraud Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Postal Inspection Service; U.S. Department of Housing and Urban Development, Office of Inspector General; Federal Deposit Insurance Corporation, Office of Inspector General, and State of Connecticut Department of Banking.

To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit http://www.stopfraud.gov.

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Wolf was sentenced in November 2007.

Mortgage Fraud Blog

Donohue pleaded guilty to one count of bank fraud. In his plea, Donohue admitted he provided false information to Lyons State Bank in order to obtain loans for purchasing and feeding cattle. In November 2007, Donohue signed a promissory note to the bank for more than .6 million. To secure the debt, he granted the bank an interest in all livestock he owned and he agreed to provide quarterly inventory reports on his cattle.

In September 2008 he provided the bank a financial statement claiming he had cattle inventory of more than .2 million when in fact value of the cattle was approximately million. In an inventory report dated Oct. 31, 2008, he claimed to have 13,267 head of cattle. The bank determined there were only 650 head of cattle to secure the loan.

Donohue also obtained loans from other lenders based on false financial statements. Farmers and Merchants State Bank in West Pointe, Neb., loaned him more than .2 million and Farmers State Bank in Garnett, Kan., loaned him more than million.

U.S. Attorney Lanny Welch announced the sentence. Welch commended the Federal Bureau of Investigation, Assistant U.S. Attorney Christine Kenney and Assistant U.S. Attorney Richard Hathaway for their work on the case.

Mortgage Fraud Blog

Stefan M. Guerra, 31, Lee’s Summit, Mo., Jerome Shade Howard, 41, Anaheim, Calif., Michael Conrad Smith, 49, Lancaster, Calif., and Gerald D. Williams, 49, and his wife, Judith E. Williams, 49, both of Bunkie, La., were sentenced in separate hearings by U.S. Chief District Judge Fernando J. Gaitan. James F. Simpson, 41, Lee’s Summit, and Cheryl Ann Romero, 52, Santa Fe Springs, Calif., were sentenced on Thursday, July 22, 2010.

Howard was sentenced to three years in federal prison without parole, and ordered to pay ,945,996 in restitution and to forfeit 0,731 to the government. Guerra was sentenced to one year and one day in federal prison without parole, and ordered to pay ,425,787 in restitution. Smith was sentenced to five years of probation, including six months of home detention and 4,000 hours of community service, and ordered to pay 0,289 in restitution. Gerald Williams was sentenced to five years of probation, including six months of home detention and 2,000 hours of community service, and ordered to pay 8,008 in restitution. Judith Williams was sentenced to five years of probation, including four months of home detention and 100 hours of community service, and ordered to pay 8,008 in restitution.

Simpson was sentenced to one year and one day in federal prison without parole, and ordered to pay 5,578 in restitution. Romero was sentenced to five years of probation, including six months of home detention and 4,000 hours of community service, and ordered to pay 8,102 in restitution.

They are among 18 defendants who have pleaded guilty in connection with a conspiracy to defraud mortgage lenders from June 2005 to May 2007. Eleven co-defendants have now been sentenced.

Conspirators were involved in buying and selling new homes in the Raintree and Belmont Farms subdivisions in Lee’s Summit, Missouri and the Eagle Glen subdivision in Raymore, Missouri. Buyers purchased the homes at inflated prices, obtaining mortgage loans by providing false information to mortgage lenders, then keeping the extra proceeds. Buyers created shell companies for the purpose of receiving those kickbacks from the builder, Jerry R. Emerick, 40, Raymore, Missouri. Kickbacks ranged from ,000 to 5,000 on each house.

Emerick, who pleaded guilty to conspiracy to commit mortgage fraud and wire fraud and to transfer funds obtained by fraud across state lines, is scheduled to be sentenced on July 30, 2010. Angela R. Clark, 41, Lee’s Summit, a real estate agent who sold new homes for Emerick, has also pleaded guilty to her role in the conspiracy and awaits sentencing. Co-defendant Cynthia Jordan, 43, Lee’s Summit, another mortgage broker, has also pleaded guilty and awaits sentencing.

In total during the course of the conspiracy, mortgage lenders approved 25 loans totaling ,616,990. From that total, buyers received approximately ,343,337 without the lenders’ knowledge. Lenders sustained actual losses totaling ,434,043.

Guerra was a mortgage broker who obtained loans for co-defendants to purchase 11 properties in the fraud scheme. The loan applications were fraudulent, and all the loans went into default and were foreclosed. Some of the property buyers in the scheme purchased more than one property. In those instances, Guerra processed the loans quickly so that the loans for the subsequent purchases would be completed before the earlier purchases showed up on the buyers’ credit reports. Guerra also used different lenders for multiple loans to avoid the risk that the lender would notice an individual was buying more than one property.

Howard purchased two properties in the fraud scheme and recruited five other California residents – including Romero and Smith – who completed a total of 10 additional purchases. Howard acted as the middleman or contact person for the California buyers. He also provided false Social Security numbers to co-defendants Ronald E. Brown, Jr., 40, Gladstone, Mo., and Daryle A. Edwards, 39, Olathe, Kan. Brown and Edwards were sentenced on June 11, 2010. All the loans for Howard and the buyers he recruited went into default and were foreclosed. The properties were then sold to third parties, with a net loss of ,945,996.

Romero was vice president and branch manager of Bank of the West, Pico Rivera, Calif., and became acquainted with Howard as a customer of the bank. Romero purchased two properties in Lee’s Summit as part of the mortgage fraud scheme and obtained 0,000 in kickbacks from the loan proceeds.

Smith, Howard‘s brother-in-law, purchased two properties in Lee’s Summit as part of the mortgage fraud scheme and obtained 0,000 in kickbacks from the loan proceeds.

Simpson purchased four properties in Lee’s Summit and Raymore as part of the mortgage fraud scheme and obtained 1,500 in kickbacks from the loan proceeds. The loans for all four properties went into default; Simpson arranged a short sale of one of the properties to his parents and the rest of the homes went into foreclosure. The foreclosed properties were sold to third parties, with a loss of 6,413.

Gerald and Judith Williams purchased one property in Lee’s Summit as part of the mortgage fraud scheme and obtained 0,150 in kickbacks from the loan proceeds. They defaulted on the loans and the loans were foreclosed, for a loss of 8,008.

Beth Phillips, United States Attorney for the Western District of Missouri, announced the sentences. 

This case is being prosecuted by Assistant U.S. Attorneys Linda Parker Marshall and Kathleen D. Mahoney. It was investigated by the Federal Bureau of Investigation and IRS-Criminal Investigation.

Mortgage Fraud Blog

As previously reported by Mortgage Fraud Blog, Eiland, along with Ming Shan Zhu, 57, Katy, Texas, the owner of Catco Homes, and Gary Leonard Robinson II, 28, Houston, Texas, a former employee of Future Mortgage Company Inc., were charged with offenses arising from an alleged scheme to defraud residential mortgage lenders of more than million in loans in connection with home purchases in the Houston, Texas area.

According to the allegations in the indictment returned at the end of December 2009, over a two-year period beginning in August 2004, Eiland, Robinson and Zhu located properties for sale in the Houston, Texas area. Eiland and Robinson then recruited individuals with good credit to act as borrowers in applications for residential mortgage loans to purchase one or more of these homes. The borrowers were allegedly paid cash to use their name and credit and told that the homes would be rented out for a year. Eiland and Robinson, according to the indictment, would then sell the home at an inflated price determined by Zhu, resulting in a significant profit.

Eiland and Robinson, according to the allegations in the indictment, set up sham construction companies to which Zhu would facilitate the forwarding of money at closing. Eiland generally told each borrower he would buy the home in the borrower’s name, make any monthly mortgage payments, find others to live in the home and pay monthly rent, take the home out of the borrower’s name after a period of time and compensate the borrower. Eiland and Robinson then allegedly completed and caused to be completed Uniform Residential Loan Applications in the names of the borrowers that overstated their employment income and other assets, understated or omitted their debts and other liabilities, falsely represented that the borrowers leased the homes they resided in and received income from the rent and falsely claimed that the borrowers intended to occupy the newly purchased homes, all of which were material to the lenders’ decisions to approve the applications and fund the loans. In support of those fraudulent loan applications, Eiland and Robinson are accused of submitting and causing to be submitted false and fraudulent documentation, including sham lease agreements and bogus employment information.

At or near the closings for those home purchases, the indictment alleges Eiland, Robinson and Zhu caused title companies to disburse the fraudulently-induced loan proceeds to various individuals and entities, including Catco Homes and the sham construction companies. Eiland, Robinson and Zhu are accused of having represented to the title companies that the sham construction companies had been hired for projects to improve those properties when, in fact, the improvements were not made or were already in the home since the home purchased was a newly constructed home.

Zhu, Eiland, and Robinson are charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Zhu and Robinson surrendered to federal authorities today. At hearing before United States Magistrate Judge Stephen Wm. Smith, Zhu and Robinson were ordered released. Zhu was ordered released upon posting a ,000 cash deposit of a ,000 bond into the registry of the court pending trial in this case. Robinson was ordered released on a ,000 unsecured bond. Eiland has been ordered release upon his posting a ,000 cash deposit of a 0,000 bond into the registry of the court. United States District Judge Lynn N. Hughes will preside over the case which has been set for trial in late March.

The maximum penalty, upon conviction, for each wire fraud and money laundering count is 20 years in prison as well as substantial fines. A conviction for money laundering carries the most significant fine of 0,000 or twice the value of the property involved in the transaction, whichever is greater.

The investigation leading to the charges was conducted by the FBI and IRS-CI. Assistant United States Attorney Jennifer Lowery is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

Mortgage Fraud Blog

According to the indictment, in June 2005, Scott Olson, Davena Ridenhour Hagen and Eric Nelson agreed to go into the real estate investment business, and formed Red Brick Homes LLC, to acquire properties, renovate them and “flip” them at a quick profit. The indictment alleges that they would buy properties in the City of St. Louis, fix them up, and then locate a “straw buyer” to purchase them. The straw buyers had no intention of occupying and owning the properties, instead, the defendants promised them a cash payment for being allowed to use their credit to finance a property. Red Brick prepared the loan applications which were submitted through a mortgage company called Sunset Mortgage where Olson was a loan officer. The applications were false in that they represented to the lenders that a straw buyer, and not Red Brick intended to control and manage the properties. Red Brick could set any price the market would bear, and at closing they would reap a quick profit on a property. Finally, according to the indictment, Red Brick stopped paying on the notes and the properties went into foreclosure. In reliance on the false statement, lenders approved loans to straw buyers for seven properties.

If convicted, each count of money laundering carries a maximum penalty of 10 years in prison and/or fines up to 0,000.

The United States Attorney’s Office announced the indictments.

This case was investigated by Internal Revenue Service Criminal Investigation. Assistant United States Attorney Tom Albus is handling the case for the U.S. Attorney’s Office.

The charges set forth in an indictment are merely accusations, and each defendant is presumed innocent until and unless proven guilty.

Mortgage Fraud Blog

As previously reported by Mortgage Fraud Blog, Eiland, along with Ming Shan Zhu, 57, Katy, Texas, the owner of Catco Homes, and Gary Leonard Robinson II, 28, Houston, Texas, a former employee of Future Mortgage Company Inc., were charged with offenses arising from an alleged scheme to defraud residential mortgage lenders of more than million in loans in connection with home purchases in the Houston, Texas area.

According to the allegations in the indictment returned at the end of December 2009, over a two-year period beginning in August 2004, Eiland, Robinson and Zhu located properties for sale in the Houston, Texas area. Eiland and Robinson then recruited individuals with good credit to act as borrowers in applications for residential mortgage loans to purchase one or more of these homes. The borrowers were allegedly paid cash to use their name and credit and told that the homes would be rented out for a year. Eiland and Robinson, according to the indictment, would then sell the home at an inflated price determined by Zhu, resulting in a significant profit.

Eiland and Robinson, according to the allegations in the indictment, set up sham construction companies to which Zhu would facilitate the forwarding of money at closing. Eiland generally told each borrower he would buy the home in the borrower’s name, make any monthly mortgage payments, find others to live in the home and pay monthly rent, take the home out of the borrower’s name after a period of time and compensate the borrower. Eiland and Robinson then allegedly completed and caused to be completed Uniform Residential Loan Applications in the names of the borrowers that overstated their employment income and other assets, understated or omitted their debts and other liabilities, falsely represented that the borrowers leased the homes they resided in and received income from the rent and falsely claimed that the borrowers intended to occupy the newly purchased homes, all of which were material to the lenders’ decisions to approve the applications and fund the loans. In support of those fraudulent loan applications, Eiland and Robinson are accused of submitting and causing to be submitted false and fraudulent documentation, including sham lease agreements and bogus employment information.

At or near the closings for those home purchases, the indictment alleges Eiland, Robinson and Zhu caused title companies to disburse the fraudulently-induced loan proceeds to various individuals and entities, including Catco Homes and the sham construction companies. Eiland, Robinson and Zhu are accused of having represented to the title companies that the sham construction companies had been hired for projects to improve those properties when, in fact, the improvements were not made or were already in the home since the home purchased was a newly constructed home.

Zhu, Eiland, and Robinson are charged with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and money laundering. Zhu and Robinson surrendered to federal authorities today. At hearing before United States Magistrate Judge Stephen Wm. Smith, Zhu and Robinson were ordered released. Zhu was ordered released upon posting a ,000 cash deposit of a ,000 bond into the registry of the court pending trial in this case. Robinson was ordered released on a ,000 unsecured bond. Eiland has been ordered release upon his posting a ,000 cash deposit of a 0,000 bond into the registry of the court. United States District Judge Lynn N. Hughes will preside over the case which has been set for trial in late March.

The maximum penalty, upon conviction, for each wire fraud and money laundering count is 20 years in prison as well as substantial fines. A conviction for money laundering carries the most significant fine of 0,000 or twice the value of the property involved in the transaction, whichever is greater.

The investigation leading to the charges was conducted by the FBI and IRS-CI. Assistant United States Attorney Jennifer Lowery is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.

Mortgage Fraud Blog

Evidence presented at sentencing and as previously reported on Mortgage Fraud Blog, revealed that Marshall falsified sales contracts, personal finance records and other documents as part of his mortgage fraud scheme. The victims of Marshall‘s scheme included banks, a family who never got a property title from Marshall after paying him 0,000 for a home, and members of the American Legion.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the inter-agency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.

The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

United States Attorney Edward J. Tarver stated, “Mortgage fraud poses a significant threat to our nation’s financial system. This prosecution demonstrates the ongoing response of the United States Attorney’s Office to protecting the integrity of the financial system of this nation. Relying on the joint efforts of federal, state and local law enforcement, this office will aggressively prosecute those who defraud financial institutions and other victims of mortgage fraud.”

Mr. Tarver praised the efforts of the FBI in bringing this criminal activity to light. Assistant United States Attorney David Stewart prosecuted the case for the United States.

Mortgage Fraud Blog