Archives For Mortgage Fraud

Selim Zherka, 47, businessman, Somers, New York, pled guilty to conspiring to make false statements to a bank in order to receive millions of dollars in loans and to file materially false tax returns with the IRS.  As part of his plea agreement, Zherka agreed to forfeit $5.23 million.

According to the Superseding Information filed in White Plains federal court and other court documents filed in the case:  From December 2005 through the present, Zherka conspired with others to obtain $63.5 million in loans from Sovereign Bank (now Santander), for the purchase and/or refinancing of apartment house complexes in Tennessee by lying about the purchase price of the real estate he was acquiring and the amount of the down payment he was making toward the purchase in question. Continue Reading…

A father and son schemed with a Chicago attorney and a Lincolnwood businessman to sell $2.9 million in phony mortgages to more than a dozen duped investors, according to a federal indictment.

Albert Rossini, 67, the owner of Devon Street Investments Ltd., Lincolnwood, Illinois plotted with Babajan Khoshabe, 74, Chicago, Illinois, and Khoshabe’s son, Anthony Khoshabe, 33, Skokie, Illinois, to fraudulently induce at least 15 victims into purchasing purported mortgage notes on apartment buildings in foreclosure, according to the indictment. The trio promised that investors would receive rental income from occupants of the buildings, followed by title to the properties at the conclusion of the foreclosure process, the indictment states. In reality, it was a ponzi scheme.  the trio did not own the mortgage notes, and instead used the victims’ funds to make Ponzi-type payments to other investors and pocket the rest, according to the indictment. Continue Reading…

ACI’s 18th Residential Mortgage Litigation & Regulatory Enforcement conference will be held on September 17-18, 2015 in Dallas, Texas.

I am co-chairing the conference, along with Andrew Stutzman, and I will be speaking on a panel entitled:

Mortgage Servicing Challenges: Fallout from the Servicing Rules, Issues Arising from Mortgage Servicing Transfers, Litigation and Enforcement Concerns, Servicer Liability Under the FDCPA and the FCRA, Determining and Implementing Best Practices, Defending Against Class Actions and New and Innovative Borrower Claims, and More

My co-panelists are Jon Hubbard, Michelle Canter and Kara Czanik.

The agenda can be viewed here:  http://americanconference.com/content/download-content/pdf/marketing/804L16_S.pdf

If you are interested in attending, you can contact Lisa Laratro at 212-352-3220 ex. 5522 or l.laratro@americanconference.com  If you tell Lisa that you were referred by Rachel Dollar, you will receive a discount on the conference rate.  In order to receive the discount, you need to call Lisa by tomorrow and let her know you will be attending.

If you would like more information on the conference and agenda, click the following link:

http://americanconference.com/content/download-content/pdf/marketing/804L16_S.pdf

 

William Donnelly Yotty, 69, who currently resides in Monarch Beach, California but during the course of the scheme lived in Lodi, California, pleaded guilty to the federal mail fraud and wire fraud charges for operating a Ponzi scheme that featured false promises of large returns to victims who invested in debt obligations and distressed real estate.

In a plea agreement filed in United States District Court, Yotty admitted that he ran several Lodi-based companies that offered bogus investments in corporate debt obligations and in distressed real estate that he and his salespeople said could be “flipped” for substantial profit. Continue Reading…

Ignacio Huergo, 44, Miami, Florida, was sentenced to 2 years’ probation, with six months to be served on home confinement, for his conviction for concealing massive financial institution fraud.  Huergo was also ordered to pay restitution in the amount of $736,254.25 to M&T Bank.

Assistant U.S. Attorney Trini E. Ross, who is handling the case, stated that Huergo worked for the companies of Frank Garcia, Federal Guaranty Mortgage Company (FGMC) and Guaranty Realty and Investment (GRI) as a bookkeeper and tax preparer between 2006 and 2008.  During that time, Huergo became aware of the business practices of Garcia, and knew that Garcia used him and another person as straw buyers as part of this vast mortgage fraud scheme.  The defendant also knew that Garcia manipulated financial statements that Huergo drafted, which were sent to financial institutions, indicating that FGMC had a minimum net worth of over $1,000,000.  Knowing about the fraud and the two ways it was perpetrated, Huergo failed to notify the authorities of Garcia’s fraud, resulting in a $24 million dollar loss to various financial institutions.  One such institution, M & T Bank, was defrauded out of approximately $4.4 million.

Garcia previously pleaded guilty to his part in this $24 million financial institution fraud scheme.  Garcia is scheduled to be sentenced on August 24, 2015.

The sentencing is the result of an investigation by Special Agents of the Federal Bureau of Investigation under the direction of Special Agent-in-Charge, Brian P. Boetig.

Ayman Shahid, 39, Danville, California, pleaded guilty in federal court in Oakland, California to conspiracy to commit bank fraud.  Shahid is the most recent and highest placed individual charged by the Northern District of California U.S. Attorney’s Office as a result of a wide-ranging investigation by the FBI into mortgage fraud in connection with the sale of homes by Discovery Sales, Inc. (DSI), and its affiliates.

Shahid, was the president of DSI, which was the sales arm of affiliated residential construction companies, including Discovery Home Builders and Albert D. Seeno Construction Co.  According to Shahid’s plea agreement, DSI was created to sell new homes built by Discovery Builders, Inc. (“DBI”), Albert D. Seeno Construction Co., Inc. (“AD Seeno”), and other entities affiliated with Albert Seeno III and the Seeno family.  The homes were built in developments throughout the East Bay Area of California, including in Contra Costa and Alameda Counties. Continue Reading…

Timothy G. Griffin, the lawyer accused of embezzling nearly $2 million from United Hebrew Cemetery, has been disbarred.

Source: Cemetery-scam lawyer disbarred | SILive.com

Rosita Vilchez, 39, a fugitive in Lima, Peru, until she was extradited to the United States in June 2015, pled guilty to leading a wide-ranging mortgage fraud conspiracy that targeted hundreds of victims in the northern Virginia Hispanic community. The mortgage fraud scheme, which operated between August 2005 and August 2007, generated nearly $7.4 million in fraudulent proceeds and caused losses of more than $15 million to lenders, most of which were federally insured. Continue Reading…

Petaluma man drops bid to avoid paying debt in mortgage fraud case

A Norwell, Massachusetts based mortgage broker, one of its loan originators, and an outside insurance agent have been sued by the Massachusetts Attorney General for sales tactics that convinced elderly homeowners to apply for reverse mortgages and invest their proceeds in risky financial products, including variable annuities

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