Former Bank Employee Admits Stealing Mortgage Proceeds

Allison Tussey —  January 8, 2014 — 1 Comment

Jill Dail, 59, Cambridge, Maryland, pleaded guilty to bank fraud in connection with a scheme in which she and her brother, Jeffrey Dail, fraudulently obtained mortgage loans in the names of family members, using the proceeds for their own benefit.

According to her Plea agreement, Jill Dail was a loan settlement processor in the mortgage department at a Salisbury, Maryland bank until she was terminated in June 2007, as part of a reduction in the bank’s workforce. Shortly thereafter, Dail was privately hired by the manager of the bank’s mortgage department to continue to do the same loan processing work she had performed as an employee of the bank. The bank manager paid Dail out of his own funds and gave her full access to the bank premises, computer system, and loan files. Dail continued to represent herself as a bank employee in her dealings with title companies and other businesses.

Jill Dail admits that beginning before January 2006 through at least August 2009, she and her brother, Jeffrey Dail, applied for mortgage loans in the names of family members and used the proceeds of the loans for their personal benefit. The Dails forged the signature of family members and bank officials on the loan applications, causing the bank to approve the applications and authorize the distribution of the loan proceeds at settlement. In each instance, the family members whose identities were used on the loan applications and whose properties were used as collateral for the loans had no knowledge of the applications or the loans.

Based on the assurances of Jill Dail, with whom the title company had a well-established business relationship, title company employees notarized the signatures of the family members on the settlement documents and disbursed the loan funds at settlement, as directed by Jill Dail, to Jill Dail herself, to Jeffrey Dail, and to their creditors. The balance of loan funds still unpaid is approximately $357,150.

Jill Dail faces a maximum sentence of 30 years in prison and a $250,000 fine. U.S. District Judge J. Frederick Motz scheduled her sentencing for April 3, 2014, at 9:30 a.m.

Jeffrey Scott Dail, 49, Cambridge, Maryland, pleaded guilty on December 5, 2013, to his participation in the scheme and faces a maximum sentence of 30 years in prison and a $250,000 fine. Jeffrey Dail is scheduled to be sentenced on February 21, 2014, at 12:00 p.m.

The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation.

United States Attorney Rod J. Rosenstein praised the FBI for its work in the investigation. Mr. Rosenstein thanked Assistant United States Attorney Kathleen O. Gavin, who is prosecuting the case.

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One response to Former Bank Employee Admits Stealing Mortgage Proceeds

  1. I am still wondering why. The individual whose handwring is on the majority of the Florida loan documents. Is being protected by HUD, the Attorney General both Schneiderman in NY and Bondi in Fla.
    FetyTraanThe major fraudster my former husband from Suffolk County NY. Skates by thee little fraudsters. Has been engaging in mortgage fraud with politicians, cops attorneys for 26 years.
    There is something that dors not add up right.

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