Archives For false income

Edgar Avila aka Michael Mendez aka Michael Edgar Avila-Mendez, aka Michael AvMen was indicted on one charge of mail fraud and one charge of bank fraud in connection with two separate fraud schemes.

According to the affidavit in support of the arrest warrant, in January 2014, Avila submitted a loan application to purchase a residence at 2915 Legend Hill Drive, Katy, Texas.  On the application, he represented that he worked for AvMen Entertainment at 924 Town and County 800, Houston for a year and a half as a line producer with a salary of $13,600 per month.  He also stated he attended Devry College of Business from September 2009 through May 2013 to account for his history prior to working at AvMen. Paystubs along with a VOE faxed to the mortgage company confirmed this employment. The officer attesting to the affidavit stated that he was unable to find a legitimate business under the name AvMen and discovered that Avila created the entity as part of his fraud scheme.  An assumed name certificate for AvMen was filed in August 2010 using the same address as listed on Avila’s driver’s license.  The affiant also stated that he confirmed through several sources that Avila and Michael Avmen were the same person. Avila’s disclosed bank accounts did not reveal any income associated with AvMen – nor did they substantiate income nearing $13,000 per month.

To support his claims of attending Devry University, according to the affidavit, Avila submitted a college transcript containing the signature of John J. Getek, as college registrar.  Investigation showed that the Getek was not registrar for Devry, instead, in 2001 he was the Deputy Inspector General of Audit for the U.S. Department of Labor, Office of Inspector General – and Getek’s digital signature was available online from his annual reports to Congress.

In March 2015, according to the affidavit, Avila defaulted on the loan.  In September 2015, the mortgage lender modified the loan and negotiated a payment plan, based on a statement from Avila that he was diagnosed with “cephalic neuralgias” and “Bell’s palsy.”  He claimed his illness caused him to lose his job and that his current job did not pay the same.  The affiant stated that while he could not rule out an illness, Avila was arrested by the Houston Police Department in 2015 “which is the more likely reason for his sudden lack of income.”

The loan was guaranteed by the U.S. Department of Veteran’s Affairs.

The affidavit also details a vehicle related fraud scheme underlying the mail fraud charges where Avila allegedly provided a fake social security card, false Texas driver’s license and fake Devry University transcript to obtain a vehicle loan. According to the affiant, he then cleared title to the vehicle through a mechanic’s lien sale to himself and sold the vehicle to a Lexus dealership.

Jeffrey T. Crothers, 50, Stockton, California, pleaded guilty to conspiracy to commit bank fraud.

According to court documents, Crothers, while working for National City Mortgage in Stockton, conspired with at least one other person to defraud National City Bank, which funded the mortgages. In 2006, Crothers submitted a loan application that falsely represented that the loan applicant was the actual borrower, that the loan applicant’s monthly income was higher than it actually was, and that the property being purchased was to be the loan applicant’s primary residence when it was not. The loan applicant was selected because of his good credit, but was unable to make the monthly payments for the loan.

Crothers also submitted a letter that contained a false explanation as to why the loan applicant was purchasing the property. The false letter was used to satisfy a condition for the issuance of the loan. National City Bank sustained a loss of approximately $87,000.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys John K. Vincent and Christiaan H. Highsmith are prosecuting the case.  The plea was announced by United States Attorney Benjamin B. Wagner.

Crothers is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on May 20, 2016. Crothers faces a maximum statutory penalty of five years in prison and a $250,000 fine.

Ex-NFL Star Irving Fryar Sentenced to 5 Years in Prison in $1.2 Million Mortgage Fraud Case

Randy Platfoot, 54, Clearwater, Florida, pleaded guilty to making false statements in mortgage loan applications.

According to court documents, between September 2005 and April 2007, Platfoot applied for two separate mortgage loans from Washington Mutual Bank, in connection with the purchase of properties in Myakka City, Florida, and Sarasota, Florida. In the loan documents that Platfoot signed and submitted to the bank, he made false statements about his income and about the lack of subordinate financing in connection with one of the properties. Washington Mutual Bank suffered financial losses after Platfoot defaulted on both loans.

Platfood faces a maximum penalty of 30 years in federal prison. His sentencing is scheduled for December 18, 2015.

The announcement was made by United States Attorney A. Lee Bentley, III.  The case was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation-Office of Inspector General. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.

Moctezuma Tovar, 46, Sacramento, California and Sandra Hermosillo, 53, Woodland, California pleaded guilty to conspiring to commit wire fraud in connection with a mortgage fraud scheme.

According to court documents, Tovar was the founder and president of Delta Homes and Lending Inc., a Sacramento, California based real estate and mortgage lending company. Delta Homes opened one office in 2003 and eventually had five offices in Sacramento and Woodland, California. As the president of Delta Homes, Tovar managed the day-to-day operations of the company and prepared and submitted residential home loan applications on behalf of Delta Homes’ clients. Hermosillo was a loan officer at the Woodland office and was also responsible for submitting residential home loan applications on clients’ behalf. Continue Reading…

Edward Dacy, 77, most recently of West Melbourne, Florida, was sentenced to six years in prison on charges stemming from a multi-million dollar mortgage fraud investment scheme involving 45 properties and $16 million in mortgage loans used for the purchase of residential real estate in the District of Columbia and Maryland.

Dacy was found guilty on March 25, 2015, following a trial in the U.S. District Court for the District of Columbia, of 10 counts of conspiracy, bank fraud, and mail fraud.  His conviction completes a three-year investigation relating to this mortgage fraud scheme. A total of nine individuals have admitted their guilt through guilty pleas or were found guilty after trial. Upon completion of his prison term, Dacy will be placed on three years of supervised release. In addition, Judge Walton ordered that he pay $2,730,345 in restitution and an identical amount as a forfeiture money judgment. Continue Reading…