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The Usual Suspects

Keyser Soze may not be real, but these common mortgage fraud schemes definitely are. By Tory Barringer Straw buyer Fraud type: For profit/for housing Straw buyers are borrowers whose identities are being used to disguise the person or entity who would actually benefit from the loan. These beneficiaries may include …

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Want to Prevent Future Mortgage Fraud? Then Look Backwards

By Bridget Berg Pearson’s Law: “That which is measured improves. That which is measured and reported improves exponentially.” – Karl Pearson Because mortgage fraud takes time to develop, many institutions, particularly newer ones or shops with new management teams, may be at risk and not realize it. As a veteran …

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Observe(d) & Report(ed)

By Tory Barringer Each and every month, Mortgage Compliance Magazine brings our readers the Mortgage Compliance Dragnet, an example of justice brought to those who fall short in—or sometimes flagrantly disregard—adherence to regulatory standards. While those crimes are serious, there is another list of names that everyone in the mortgage …

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Police Blotter – Mortgage Compliance Dragnet, August 2017

Attorney Involved in Scheme that Targeted Distressed Homeowners Sentenced to 30 Months in Federal Prison 07/17/2017 11:11 AM EDT Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that BRADFORD BARNEYS, 51, of Odenton, Maryland, was sentenced today by U.S. District Judge Michael P. Shea in Hartford …

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Financial Freedom Settles Alleged Liability for Servicing of Federally Insured Reverse Mortgage Loans for $89 Million

Financial Freedom has agreed to a settlement with the United States of more than $89 million to resolve allegations that it violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) in connection with its participation in a federally insured Home Equity Conversion …

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The Mortgage Compliance Dragnet – May 2017

Fraudsters Convicted of Operating Nationwide Home Mortgage Scam 04/21/2017 02:14 PM EDT ALEXANDRIA, Va. – Three co-conspirators who operated a nationwide, multi-year “home mortgage modification” fraud that scammed hundreds of victims out of at least $10 million were convicted today by a federal jury. “These defendants scammed hundreds of individuals …

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The Mortgage Compliance Dragnet – April 2017

Long Island Man Sentenced To 15 Years In Prison For Defrauding Homeowners In Loan Modification Scheme Date Published:  March 7, 2017 BROOKLYN, NY – Earlier today, David Gotterup was sentenced at the federal courthouse in Brooklyn, New York, to 15 years in prison for leading a loan modification scheme that …

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Queens Man Convicted For Defrauding Financial Institutions

BROOKLYN, N.Y. – James Bayfield, a self-described mortgage specialist, was convicted late yesterday by a federal jury in Brooklyn on all four counts charging bank fraud and conspiracy to commit wire fraud and bank fraud for his role in defrauding mortgage lending institutions and large financial institutions, including Amtrust Bank …

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Former Newspaper Publisher, Mortgage Broker, Title Agent and Others Charged in $10 Million Mortgage Fraud Scheme

A former newspaper publisher, mortgage broker, title agent and other individuals are charged federally for their participation in a $10 million mortgage fraud scheme. Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami …

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Rocklin Man Pleads Guilty to Large-Scale Mortgage Fraud Scheme

Department of Justice – U.S. Attorney’s Office – Eastern District of California FOR IMMEDIATE RELEASE Thursday, November 17, 2016 SACRAMENTO, Calif. —Aleksandr Kovalev, 53, of Rocklin, pleaded guilty today to wire fraud involving financial institutions in connection with a mortgage fraud scheme involving the purchase of at least 31 properties, Acting …

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