Foreclosure “Rescuer” Sentenced for Mortgage Fraud

admin —  June 15, 2010 — Leave a comment

Jeffery Tye Brown, 50, Henderson, Nevada, was sentenced to prison following a plea of guilty to felony mortgage fraud in violation of NRS 205.372, a Category C felony, in connection with the operation of DB Financial Services, a foreclosure rescue business located in Henderson.

Las Vegas District Court Department 1 Judge Kenneth E. Cory sentenced Brown to serve twelve (12) to thirty (30) months in the Nevada Department of Corrections. In addition to the prison sentence, the Defendant was ordered to sign civil confessions of judgment agreeing to restitute the victims in the amount of $23,685.00. The defendant was also ordered to pay extradition reimbursement fees to the State of Nevada in the amount of $7,046.50. Brown has been in custody since his arrest in the Philippines in February 2010 and will receive credit for time served.

As previously reported on Mortgage Fraud Blog, the State charged Brown with falsifying loan applications which he submitted to lenders by inflating the incomes of his victims in order to demonstrate a better financial condition or ability to pay a monthly mortgage. In other cases, he misled customers into believing that, for a fee, he would guarantee resolution of a victim’s pending mortgage foreclosure.

The State’s case against Brown was based on an investigation by the Attorney General’s mortgage fraud task force which revealed that between December 2007 and February 2008, Brown contacted victims whose homes were going into foreclosure and obtained advance payments upwards of $999.00 for foreclosure rescue services that he never performed. He failed to give refunds despite promising refunds in his contracts and advertising. He also forged documents to the Mortgage Lending Division to cover up the criminal activity.

Shortly after execution of a search warrant on the DB Financial offices in 2008 by the mortgage fraud task force, Brown fled the country. He was extradited back to the U.S. from the Philippines, where he was in hiding to evade authorities. The plea agreement requires Brown to forfeit monies seized from his company to pay for the costs of his extradition from the Philippines.

I am hopeful that prison sentences such as the one imposed in this case, will be a further deterrent to would be scammers who prey on those in need,” said Attorney General Catherine Cortez Masto.

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