Archives For Ohio

Timothy R. Bradley, 41, formerly of Toledo, Ohio, now of Cary, North Carolina; and Martha E. Ednie, 54, Toledo,  Ohio, were each sentenced to 30 months in prison for their roles in a $1.5 million conspiracy to defraud several banks.  Both defendants worked in the real estate business.

Bradley was previously found guilty of one count commit bank fraud and 11 counts of bank fraud. Ednie was previously found guilty of one count commit bank fraud and 20 counts of bank fraud.

Bradley worked as a real estate agent working for various brokerages in the Toledo, Ohio area, while Ednie was a mortgage broker who operated Apex Mortgage Company. Bradley and Ednie conspired with others, beginning in 2005, to obtain fraudulent mortgage loans by concealing the true purchase price of the underlying properties from banks making the loans, according to court documents.

The true purchase price was represented by an “addendum” to the real estate contract, which lowered the purchase price. These addendums were signed near the time of closing and were concealed from the lenders. Unbeknownst to the lenders, they were loaning the home purchasers between 82 percent and 135 percent of each home’s value based on the adjusted addendum purchase price, according to court documents.

Bradley was listed as the real estate agent on the contracts and Ednie secured financing in her role as mortgage broker. Bradley and others attracted buyers to the scheme by advertising the properties as good sources of rental income and assuring cash back at closing, according to court documents.

Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS-Criminal Investigations made the announcement.  The investigating agency in the case is the Internal Revenue Service-Criminal Investigations, Toledo.  The case is being handled by Assistant United States Attorney Gene Crawford.

Angelo Alleca, 46, Buffalo, New York, and Mark Morrow, 54, Cincinnati, Ohio, were arraigned on charges of orchestrating a multi-million dollar investment fraud scheme.  The Defendants marketed several funds that were supposed to invest in certain assets/investments, such as hedge funds managed by a professional money manager of mortgage debt.  According to the new indictment, they instead used the money to pay redemptions to earlier investors, to acquire and operate several businesses, and to pay personal expenses.

According to U.S. Attorney John Horn, the indictment, and other information presented in court: From on or about 2004 until 2012,  Alleca acted as the President and Chief Operating Officer of Summit Wealth Management, an investment adviser headquartered in Atlanta, Georgia. During that time, Alleca started several funds and falsely misrepresented that money would be invested in hedge funds and debt securities and managed by professional investment managers. Continue Reading…

Sharrock denied shortened prison sentence

A federal judge has rejected David R. Sharrock’s request to overturn or shorten his 135-month sentence for mortgage fraud, concealment of property and fraudulent transfer in a bankruptcy.

U.S. District Court Judge Donald C. Nugent issued a ruling saying he believes testimony given during a July 28 hearing in Cleveland where Sharrock’s attorney, James McDonnell, told the court the 73-year-old inmate never asked him to file an appeal after he plea no contest in September 2013.

The Ohio Attorney General brought a lawsuit against the operators of a California-based loan modification scheme accused of taking thousands of dollars from Ohioans while falsely promising to help them avoid foreclosure.

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Constance Kanary, 52, Toledo, Ohio, is the subject of a two-count indictment charging her with participating a fraudulent home loan modification conspiracy.

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Brenda Ashcraft, 45, Milford, Ohio, pleaded guilty in U.S. District Court to defrauding investors of at least $15 million between 2009 and 2013 in a fraudulent investment scheme to purchase and sell real estate through real estate investment trusts (REITs).

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Damone Tyson, 49, Cleveland, Ohio, was indicted on bank fraud charges related to the fraudulent purchase of a Richfield, Ohio, home for nearly $1.2 million.

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Joe Spaqi, 60, Cleveland, Ohio, has been indicted and charged with fraudulently obtaining nearly $1 million from the now-closed St. Paul Croatian Federal Credit Union.

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Haider Zafar, 36, formerly of Dublin, Ohio, was sentenced in U.S. District Court to 72 months in prison, three years of supervised released, and was ordered to pay $15,723,034 in restitution for committing a $10 million fraud scheme involving false representations about investments in Pakistani real estate and to fraudulently obtaining a $1 million Miami Heat ticket package.

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Consumers are again being warned of phony loan offers and reminded that legitimate lenders will not approve loans in exchange for a fee.

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