Daily News and Information for the Mortgage Loan Originator
3 Mortgage Brokers and 2 Argent Employees Arrested in Multi-Million Dollar Fraud Case
Monday, July 23, 2007
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TAMPA, FL - According to the Florida Department of Law Enforcment (FDLE) a three-year joint investigation has led to the arrests of five defendants charged with racketeering, conspiracy to commit racketeering, obtaining of a mortgage by false representation, and second-degree grand theft by fraudulently obtaining mortgages in the names of victims solicited for home improvement projects and for obtaining fraudulent loans on their own personal properties. The individuals arrested include Scott Almeida, Orson Benn, Adrienne White, Frank Giffone, and Samuel Green.
Almeida, Giffone and White, are all former owners, principals or employees of the Hillsborough County mortgage broker companies Advanced Mortgage Solutions and Consumer Lending Resources. In addition to the mortgage brokerage businesses, the defendants operated two home improvement companies: Premier Quality Renovations and Florida Beautiful Construction.
The other two defendants charged, Benn and Green, are former high-ranking employees of Argent’s White Plains, New York office. Benn and Green were instrumental in the fraud as they subverted Argent policies and approved fraudulent documents and loan packages submitted by brokers. The fraudulent loans were funded and the proceeds were distributed to the defendants. Benn received bribes or kickbacks from Almeida, Giffone and others associated with submitting the fraudulent loan packages for approval.
“The allegations brought against these individuals are unspeakable. To prey on the hopes and dreams of these people who were simply trying to improve their homes is a terrible scheme and my office is committed to prosecuting those involved to the fullest extent of the law,” said Attorney General Bill McCollum. “I commend the cooperation exhibited by this investigation and look forward to a positive resolution for the citizens who were victimized.”
Female Originator and Eight Others Indicted for Fraud Jeannie Nelson, a licensed mortgage broker and Executive Vice President of Royal Lion Mortgage, Inc. and eight other defendants were indicted for their participation in a fraud scheme that caused ABN Amro Mortgage Group, Inc. to enter into allegedly fraudulent refinance loan transactions.
Top Producing Originator Pleads Guilty In Massive Fraud Scam Richard A. Maize, a top-producing mortgage banker, closing more than $192 million in loans in 2001 and more than $245 million in loans in 2002 has plead guilty to his involvement in a massive fraud scheme.
Piggy Back Credit May Get Loans Outright Rejected The practice of adding an applicant as authorized user of an existing credit line to improve the applicant's credit score also known as "piggy back credit" may actually get the loan rejected from several major lenders according to originators around the country.
Fraud Lands Two Brokers and Insider in Prison Joseph White of Southern Lenders Mortgage and Michael Jones of Infinity Mortgage have both been convicted and sentenced for their participation in an $11 million fraud perpetrated against nBank, with the participation of a then nBank vice president, Ronald Walton.
Man Steals $2 Million From Cendant While in Prison In one of the oddest fraud stories covered by the Originator Times, two men, one of which was still in prison during a portion of the alleged fraud and one Cendant insider were allegedly able to steal $2 million from Cendant bank by misdirecting legitimate wire transfers intended to fund mortgage loans.
4 Indicted in $8 Million Straw Buyer Scheme Four individuals have been indicted for allegedly participating in a straw buyer scheme that involved at least 19 homes with loans of more than $8 million. According to the indictment, the participants allegedly recruited straw buyers with good credit to purchase homes for buyers that otherwise would not qualify for loans. The defrauded lenders included Washington Mutual and Fremont Investment and Loan.
