On July 5, 2005, the United States of America filed a civil action against Dale Scott Heineman and Kurt F. Johnson d/b/a The Dorean Group, The Oxford Trust and Universal Trust seeking an injunction against the continued operation of the Dorean Group mortgage elimination scheme. According to FBI statements in court papers, $2.8 million was deposted into one Dorean bank account over the course of a year and at least $230,000 was wired from that account to a bank account in Riga, Latvia.
On July 6, 2005, Judge William Alsup accepted the case, finding that it was related to the cases filed in the Northern District of California by Heineman and Johnson late last year which resulted in his prior order dismissing those cases and ordering sanctions.
On July 6, 2005, Judge William Alsup signed a Temporary Restraining Order prohibiting the defendants from further violating 18 U.S.C. § 1341 (Mail Fraud), 18 U.S.C. § 1343 (Wire Fraud), and 18 U.S.C. § 1344 (Bank Fraud) through their “mortgage elimination” program, and from alienating or disposing of property obtained as a result of said violations.
In particular, the TRO prohibits the defendants, their officers, agents, brokers, attorneys and employees from:
(A) Engaging in any activities related to their mortgage elimination scheme, including:(1) Advertising their debt elimination services via the Internet, telephone, or any other wire communication, or by mail (whether by commercial carrier or United States Postal Service carrier), to any individual and/or any entity;
(2) Soliciting or receiving fees from any individual or entity;
(3) Creating any trusts, or entering any trust agreements;
(4) Delivering, sending, mailing, or wiring “presentment packets” to lenders, or any documents that purport to appoint themselves as the lender’s agent or attorney-in-fact, or that demand that the lender acquiesce in the scheme;
(5) Filing or recording any documents with any county clerk, or county recorder’s office, or registers of deeds;
(6) Receiving proceeds from refinanced loans and/or sale of properties to which defendants have applied their mortgage elimination program;
(7) Offering, providing, and/or sharing of advice, including but not limited to seminars, tutorials, and conferences, relating in any way to the Dorean Group’s practices.
(B) Withdrawing, transferring, removing, dissipating, and disposing of property obtained as a result of its fraudulent conduct, and freezing defendants’ assets that they obtained as a result of the fraud, including funds in the following back accounts:
Account No. 03916839
Account Name: Lasting Legacy Trust
Fremont Bank
32000 Alvarado Boulevard
Union City, California 94587
Account No. 03916847
Account Name: Cancer-Free Trust
Fremont Bank
32000 Alvarado Boulevard
Union City, California 94587
While the prior order obtained by the North Carolina Attorney General only prohibited conduct within North Carolina, the Temporary Restraining Order issued by Judge Alsup prohibits the conduct nationwide.
An Order to Show Cause hearing has been scheduled for August 1, 2005 at 1:00 p.m. At that hearing, the defendants will have an opportunity to present evidence as to why a preliminary injunction should not issue pending trial of the government's case.
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.