Seven people were indicted in the U.S. District Court for the Western District of Oklahoma on allegations that they inflated the purchase price of homes to obtain cash back at closing in the guise of false remodeling or repair costs. Those indicted were:
Brandon L. Baum, real estate salesman and owner of Secorum Investments, LLC.
Gayle L. Caldwell, owner of Access Marketing Services Inc., Edmond, Oklahoma
Joseph Conrad Therrien, home buyer
Charles E. Caldwell Jr., husband of Gayle L. Caldwell and mortgage broker with United Lending, Oklahoma City, Oklahoma
Teresa M. Therrien, home buyer.
Rusty Real Therrien, home buyer and husband of Teresa Therrien.
Timothy J. McDaniel, home buyer.
(referenced by their initials in the indictment as home buyers but not charged were D.J.A. and F.B.)
According to the indictments:
Baum would tell his clients (potential home buyers that he represented as a real estate agent) that they could receive substantial funds at closing under the guise of repair costs that they would be able to use for their personal benefit so long as they agreed to purchase the homes at an inflated price. Seller’s agents that represented certain ‘hard to sell’ properties in the Oak Tree Subdivision, Edmond, Okalahoma, would negotiate with Baum.
Brokers at United Lending, including Charles E. Caldwell, Jr., would facilitate the submission of fraudulent loan applications for the potential homeowners that could not qualify for the loans. False information would be provided on the loan applications. In some cases, Baum, Charles Caldwell Jr., Joseph Therrien and Rusty Therrien would provide temporary loans to buyers for down payments with the understanding they would be reimbursed at closing from the purported remodeling or repair costs, marketing services fees and other undisclosed disbursements. The buyers in those cases would falsely represent the sources of the down payments.
Baum would present the sales contracts to the sellers agents at prices far above those listed on the MLS. The sellers agents would then present the contracts to the sellers by which the sellers would agree to ‘pay for’ the purported remodeling, repair and other charges. Once the purchase terms had been approved by buyer and seller, the seller’s agents would, in many case, increase the MLS list price to an amount equal to or above the agreed inflated purchase price to avoid detection by the lenders.
At closing, the title companies were directed by Baum, sellers' agents and the sellers to issue checks from the sales proceeds to various entities for purported remodeling, repair costs, marketing service fees or other fees.
T.C.M. was an associate of Baum and controlled bank accounts that Baum used to funnel money back to defendants, buyers and others after closing. The title company checks issued to the various entities for purported remodeling, repairs and other fees would be deposited and Baum would direct T.C.M. to issue checks or obtain cashier’s checks payable to buyers, those who advanced down payment funds and others. In one case, Secorum was used to funnel these charges back to the buyer.
Properties referenced in the indictment:
1000 Irvine Drive, Edmond, Oklahoma
1709 Irvine Drive, Edmond, Oklahoma
5813 Dundee Terrace, Edmond, Oklahoma
5916 Morning Dove Lane, Edmond, Oklahoma
6125 Stonegate, Edmond, Oklahoma
1208 Troone Drive, Edmond, Oklahoma
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.