Oregon Loan Officer Pleads Guilty in Mortgage Fraud Scheme

Allison Tussey —  May 18, 2007 — 5 Comments

Mark Todd Harless, 40, mortgage loan officer, Eugene, Oregon, pled guilty in connection with his participation in a scheme involving the use of fraudulent information on loan applications submitted to obtain mortgage loans.

Harless was indicted by a federal grand jury in October 2006. The three count indictment charged that Harless, from January through April 2005, was employed as a loan officer at Allegiance Mortgage Company, Eugene, Oregon. Known as one of “The Boys of Allegiance” in company advertisements, Harless was charged with engaging in a scheme to provide false employment information for some of his customers in order to qualify them for mortgage loans. Indicted along with Harless was Hien Williams, also employed as a loan officer at Allegiance. Williams is scheduled to be tried on June 26, 2007.

According to the indictment, Harless listed in mortgage applications that three customers of Allegiance were each managers of a Eugene, Oregon children’s clothing store, earning at least $3,000 per month, and had been employed there for at least two years. In reality, Harless’ girlfriend owned the store and none of the Allegiance customers worked there. Harless was further charged with causing loan applications, containing the false employment and earning information, to be submitted to lenders for loan approval.

The indictment alleged that Harless arranged for someone at the used clothing store to falsely verify to lenders that the Allegiance customers were really working at the store, and earning the income falsely listed in the loan applications. The indictment states that, on one occasion, Harless charged an Allegiance customer $200 for use of the false employment and earning information. The loans were funded by lenders, and Harless earned commissions for the loans.

Harless pleaded guilty to all three counts of the indictment, each of which charged him with wire fraud, a felony offense, punishable by up to twenty years in prison and a $250,000 fine. Sentencing is scheduled for July 31, 2007 at 10:30 a.m.

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5 responses to Oregon Loan Officer Pleads Guilty in Mortgage Fraud Scheme

  1. It’s amazing. Large lenders, who have gone out of business because of all the fraud in the industry seem to want answers now and so does their shareholders. Their stocks have plummeted and they are not just going to sit back and take it! I have seen a lot of outright fraud in the industry as a contract processor and upon discovery, I completely walk away from the broker and tell them to lose my number. It is really a tragedy, although, that we have all the fraud in the industry, which has made it difficult for the honest groups. Can’t we all just get a loan?

  2. victim of fraud June 3, 2008 at 7:14 pm

    I know of a person who has committed all of the same crimes as the people being discussed. Falsified documents to get the customer approved for the loan. Things like employment and income verification. I became a victim of her schemes and nothing was done about it. The mortgate industry nor the companies she worked for will even acknowledge she did something wrong. She was terminated for not producing and still works in the industry. The case I have against her now is being handled by the state for what she did to me but not by the mortgage industry. And they wonder why they have this problem. She worked for CFIC Home Mortgage as a broker and when terminated she became a loan officer for Van Dyke mortgage. She had utilities on in one customers name and got a Lexus with the information obtained from my file for a loan. As I stated she is still working in the field independently but she is still able to obtain people personal information in Dallas County. I should not have had to press charges against her. I reported what she had done to the company (Van Dyke) she was working for at the time and they basically said they had no knowledge of the loan so they had no responsibility. Of course they had no knowlege because she stole $5K from me saying it was for appraisal fees and the rest was going into escrow to be available at closing in addition to getting a vehicle at my expense. Bottome line BEWARE OF ERICA BANKS (DALLAS COUNTY AREA) If you have been a victim of this person please call Dallas County DA in Dallas, Tx.

  3. Mark ,Escrow Officer June 26, 2008 at 3:42 pm

    It seems to me that all the customers have the same claims of fraud and that they were done wrong when the deal goes wrong In reading this is seems to me like a clear case as ususal as the buyer wannted something from the broker They want these brokers to move mountains they were probably straw borrowers or had some fraud documents and wantted the broker to pass them thru Yes I agree wrong on both parties but this customers knows a little to much about this broker sounds to me they were in it together and just like most straw borrower deals when the customer doesnt get there way they turn on the broker to keep them self clean nice try for the helpless victim

  4. My mother and I are victims of predatory lending performed most eloquently by Carolina Farm Credit…they have been assisted well by the local churches as the deacons of the area serve the financial and lending institutions well here. Wachovia Bank and Deacon are the common threads that weave themselves lucratively through this long running scenario of deceit…

    We also are dealing with a bank fraud, an embezzlement and an identity theft. He already pulled his time. I have a 30 years sentence with no parole…the actual criminal party served 13 months, and has 36 months supervised probation.I have 30 years and no parole? What are a the North Carolina rules on the type of Power of Attorney that may be used in a real estate transactions? Transactions pertaining to loans with lots of property used as collateral.

    My mother’s case has been in the hands of the FBI since August of 2006….What is wrong with the FBI in NC that they will lie, cheat and steal to assist the criminals in this most serious matter of multiple criminal perpetrations against my now 85 years old mother…she is 85 today….and we have foreclosure issues facing us…with little to no money left to live on and a $650,000.00 debt from all these criminal acts…All you fraud experts…come on down to North Carolina … there is no danger in ever getting caught at all. The God Boys, formerly known as the Good Ole Boys will assist you and the FBI is too busy assisting the existing criminals to even notice one or two more frauds going down…After all, it is only someone’s home.

    The rest of the law enforcement is sucking up to the new assistant DA..at least that is what is going on in Yadkin County. Attorney Donald Tisdale; the one from Daryl Hunt acclaim…he ran this show…My mother’s case was deemed to be of interest to Homeland Security before Tisdale…After Tisdale, my mother and I had no identity….literally. The perpetrator figured out how to move large sums of money across state lines with no tracing it back to the originating account….that of my mother. One would think this might interest the FBI…after all that man could be a terrorist or someone gathering money for harm…No one will ever know…he s not being investigated. I was guaranteed there would be NO CRIMINAL investigation into Carolina Farm Credit or Daniel Dowling….former agent with that most reputable company….American Family Legal Plan…the most insidious perpetrations against the elderly since the establishment of the western Pennsylvania BBB…this was acording to Lawrence Walsh…Why is this being allowed….Perfect crimes are not committed, they are allowed. Deputy Donnie Talley put it very well one day…deputy Talley is in the Yadkin County Sherrif’s office….He stated that the FBI was the “First Batch of Idiots” and the SBI was the “Second Batch of Idiots.” I must say that from the amount of intelligence I have seen exhibited in the understanding of the written law in the state of NC in regard to my mother’s case…there is not much off base in the assumption of detective Talley.

  5. Could someone please tell me when North a crime in Maryland was not a crime in North Carolina….a crime the magnitude of the Joy Jackson kind? Is North Carolina not a part of the United States any more? I am extremely thankful to the party who sent the article to my attention as I have been attempting to make known the criminal element in the similar situation I have been dealing with for so long. the same investigative offices, the same as contacted in North Carolina received accolades for their outstanding work… in North Carolina, they simply were “NOT INTERESTED!” Anyway, I thank you very much for the information and for realizing the similarities. The property authorities are now notified of the similarities and have these same questions in front of them….This might make a difference in how the case involving my mother, who, I might add; just lost her home in a predatory lending swindle of the same type that is going to put Joy Jackson behind bars for a substantial amount of time. In North Carolina; it has been up to now, “Who Cares?” I care and I thank you for it seems you did too. My mother thanks you from the bottom of her heart…. she is 85 and desperately wants to return to her home…. the entire North Carolina swindle is a swindle from 1990 to the present.

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