Initial Court Appearance for the Alleged Mortgage Fraud Mastermind

October 20, 2010
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Bayside, New York – Jong Shin was the alleged mastermind of a mortgage fraud and money laundering scheme that involved residential properties in Atlantic City, New Jersey has his initial appearance in connection with a two-count indictment.

The Indictment charges that Shin conspired with others to get hold of more than a million dollars of mortgage loans for unqualified borrowers during June 2006 through December 2006 to purchase seven houses in Atlantic City at inflated prices. The Indictment further alleges that Jong Shin and other members of the conspiracy took out a portion of the proceeds from the fraudulently obtained mortgage funds paid at the real estate closings, which Shin used…

Mortgage Fraud Committed by a Home Builder

August 10, 2010
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Jacksonville, Florida – Marshall Craig Scott was found guilty of committing mail fraud, wire fraud, and conspiracy to commit mail fraud. Scott faces a maximum penalty of 145 years in federal prison. The sentencing hearing is scheduled for June 24, 2010. Scott was indicted on October 29, 2009.

Scott was one of four conspirators who schemed to defraud a variety of lending institutions in connection with residential home mortgages. Scott was one of three owners of American Home Builders, Inc. (AHB), who participated in a scheme to trick lending institutions into lending money to fund the purchases of new homes built by AHB.

Evidence established that the “extra money” extended by the…

A Multi-Million-Dollar Mortgage Fraud Scam Sends a Broker in Prison

July 9, 2010
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Bethesda, Maryland - Michael Milan was sentenced to 108 months in prison, pursued by three years of supervised release, for his role in carrying out a multi-million-dollar mortgage fraud scheme. He was also ordered to pay restitution of $3,141,409 and to forfeit $1,061,890 in proceeds he got hold of.

Milan was a consultant to various mortgage brokerage companies and connived with others to defraud mortgage lenders into lending funds for the purchase and refinance of residential properties. Milan caused his associates to prepare false mortgage applications which contained false information about the income and assets of the borrowers. Some of the mortgage applications falsely claimed that the borrowers earned hundreds of…

Nearly 17 Years of Imprisonment for a Fraudster

June 21, 2010
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Haiti – Mario G. Bernadel was sentenced to nearly 17 years in prison for his conviction on multiple counts for leading a mortgage fraud scheme in Phoenix, Arizona that cost banks over $9 million.

In September 2009, Bernadel was found guilty by a jury on 19 counts related to mortgage fraud that includes mail, wire, bank fraud, and transactional money laundering. Bernadel led a two-year conspiracy involving the purchase of 37 properties using fraudulent loan documents and receiving cash back at closing.

Seven co-conspirators were also charged and have pleaded guilty for their involvement in the conspiracy and many will be sentenced in the next few months.

The case in opposition to Bernadel…

A Guilty Plea for a Real Estate Investor

May 31, 2010
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Royal Oak, Michigan – The 27 year-old, Paul Bashi, formerly of Washington Township, Michigan, pleaded guilty to federal information that charges him with conspiracy to commit wire fraud.

During the hearing and according to court documents, Bashi admitted that from September 2006 to March 2008 he recruited straw borrowers and assisted them in applying for loans to purchase residential property based on false information and fraudulent documentation with regard to employment, income and/or assets, among other things. Bashi, who was mostly doing business as JP Land Development Inc., was responsible for completing the loan applications and gathering the necessary supporting documentation. The mortgages that total to almost $6 million were issued…

Ex-Texas Broker Sentenced for Mortgage Investment Scheme

March 4, 2010
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Houston, Texas – David Isaac Lapin is a former broker connected with the failed Premiere Holdings of Texas LLC that has been found guilty and sentenced to prison for failing to disclose a crime to authorities and covering up material facts from investors. Lapin pleaded guilty on February 16, 2010, to criminal information charging him with misprision of a crime.

He was sentenced to 36 months in federal prison without parole and fined $60,000 in connection with the operation of Lapin and Wigginton Asset Management, a subsidiary of Premiere Holdings LP – a real estate investment program. Lapin and co-defendants, attorney Ted Russell Schwartz Murray and Jeffrey Carl Wigginton Jr., were…

A Man Sentenced in Fraud Scheme to Acquire Mortgage Loans

March 3, 2010
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Rosemount, Minnesota – Eric Jason Sunsdahl was sentenced in federal court in connection with a scheme to acquire mortgages and funds fraudulently from a bank in Inver Grove Heights, Minnesota.

Sunsdahl was sentenced to 24 months in prison on one count of bank fraud. He was charged on April 21, 2009 and pleaded guilty on September 9, 2009.

Sunsdahl admitted that on April 29, 2005, he caused Bremer Bank to create a home equity line of credit in the amount of $100,000 based on a fraudulent loan application. His scheme to defraud Bremer Bank, conversely, spanned from 2004 through 2007 and included $726,210 in loan proceeds.

In that period, Sunsdahl was employed as…

The Father and Son Tandem Pleaded Guilty of Mortgage Fraud

March 1, 2010
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Broken Arrow, Oklahoma – Gerald Wayne Snow, Sr., a.k.a Gerald Snow, has pled guilty to Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 1349 and five counts of Wire Fraud, in violation of Title 18, United States Code, and Section 1343. The Superseding Indictment also contained a criminal forfeiture of $4,878,743.87.

Charges arose from an investigation by the Federal Bureau of Investigation. The Superseding Indictment, filed in February 2010, alleged that Gerald Snow and his son, Jerry Snow, built and sold houses in the Jordan Oaks and Megan Farms subdivisions of Wagoner County, Oklahoma. As previously reported on Mortgage Fraud Blog, Gerald Snow conspired with…

An Escapee Title Company Owner is Under Arrest

February 22, 2010
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Baltimore, Maryland - Daniel E. Fink Jr. who owned and operated Homemaxx Title & Escrow LLC (Homemaxx), a title company that conducted residential real estate closings with offices in Middle River and Parkville, Maryland, was arrested in Palm Beach, Florida and had his initial appearance in federal court in Florida.

Fink had been an escapee since March 26, 2009, when a federal grand jury in Baltimore, Maryland, returned an indictment charging him with wire fraud and money laundering in connection with a scheme to defraud lenders and homeowners of over $500,000.

From February 2003 to July 2004, Fink caused Homemaxx to fail to pay outstanding first mortgages on real estate transactions or…