Title Company Manager Gets 4 Years in Prison for Mortgage Fraud

Allison Tussey —  April 29, 2014 — Leave a comment

Bonnie Kathleen Kreamer, a/k/a Bonnie Meehan, 49, Riva, Maryland, was sentenced by U.S. District Judge James K. Bredar to 51 months in prison, followed by three years of supervised release, for conspiring to commit wire fraud in connection with a mortgage fraud scheme which resulted in losses of over $4.8 million. The defendant and her co-conspirators used many fraudulent techniques to further the conspiracy, including short sales in which the property was sold for a higher price than was represented to the lien holder and the seller.

Judge Bredar also ordered Kreamer to pay restitution of $2,499,048 to the victims and to forfeit $4.8 million.

According to her plea agreement, in 2002, Kreamer’s Maryland license to issue title insurance policies was revoked after she was convicted of theft for fraudulently endorsing checks at a title attorney’s office where she worked.  Despite her conviction, from 2007 until January 2010, Kreamer worked at Sanford Title Services LLC, Columbia, Maryland, and had significant day-to-day responsibility for the operation of Sanford Title.

As previously reported by Mortgage Fraud Blog, from June 2008 to January 2010, Kreamer and co-conspirators Niesha Williams, Rhonda Scott, Emeka Udeze and Demetrius Peete arranged various aspects of real estate transactions so they could siphon profits out of the transaction for themselves.  They used many fraudulent techniques to further the conspiracy, including: short sales in which the property was sold for a higher price than was represented to the lien holder and the seller; sales of properties not owned by the seller at the time of settlement; real estate transactions in which there were multiple sales of the same property at the same time; real estate transactions in which the buyer’s financial status was misrepresented to lenders; transactions in which the seller and/or buyer were shown different settlement statements and the conspirators used the difference between the figures in the two statements to enrich themselves.

In addition, Kreamer admitted that she personally facilitated deals between her co-conspirators, prepared false settlement statements, improperly disbursed funds contrary to the settlement and lender approved disbursements sheets, failed to pay off mortgage loans in accordance with the settlement documents, directed funds to entities created by herself and her co-conspirators, received proceeds of fraudulent transactions, and improperly issued title insurance policies.

Kreamer admitted that the scheme involved at least 30 victims, including lenders, sellers and buyers of real estate, a title insurance company and lien holders.  She further agreed that her offense involved sophisticated means and her abuse of a position of trust at Sanford Title. The reasonably foreseeable loss associated with Kreamer’s conduct is at least $4.8 million.

Niesha Williams, 34, Fort Washington, Maryland; Rhonda Scott, 52, Oxon Hill, Maryland; Demetrius Peete, 46, Manassas, Virginia each previously pleaded guilty to their roles in the fraud and are scheduled to be sentenced on May 1, May 2, and May 7, respectively. Gregory Green, 49, Waldorf, Maryland, also pleaded guilty and was sentenced to three months in prison and ordered to pay restitution of $404,596. A fifth conspirator, Emeka Udeze, 38, Bowie, Maryland, also pleaded guilty and is awaiting sentencing.

The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Stephen E. Vogt of the Federal Bureau of Investigation; Special Agent in Charge Brian Murphy of the United States Secret Service Baltimore Field Office; Special Agent in Charge Michael P. Tompkins, Washington Field Office, U.S. Department of Justice Office of the Inspector General; Howard County Police Chief William McMahon; and Howard County State’s Attorney Dario Broccolino.

The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available www.justice.gov/usao/md/Mortgage Fraud/index.html.

United States Attorney Rod J. Rosenstein praised the FBI, Department of Justice – OIG, Howard County Police Department, Secret Service and Howard County State’s Attorney’s Office for their work in the investigation.  Mr. Rosenstein thanked Assistant United States Attorneys Harry M. Gruber and Judson T. Mihok, who are prosecuting the case.

Be Sociable, Share!

Allison Tussey

Posts Google+

No Comments

Be the first to start the conversation.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong> 

*