home mortgage fraud newsletter full stories advertise mortgage industry newsletter RSS about us
 
HOT Topics Fraud Resources Fraud Prevention Mortgage Litigation News Appraisal News

Sign Up for Free Mortgage Fraud Newsletter


 
 
twitter linkedin
facebook google+
Mortgage News

Search
Search mortgage fraud news by keyword.

Mortgage Fraud News
News, analysis and statistics about mortgage fraud.

Local Mortgage Fraud
Stories about individual mortgage crime cases.

Mortgage Fraud Statistics
Statics by year about real estate fraud.

Mortgage Fraud Index
Quarterly index based on case activity.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage Fraud Feedget RSS code
The latest case activity tracked by FraudBlogger.com for your Web site or for your RSS reader.

Mortgage Fraud Archives
Archive of FraudBlogger.com entries going back to 2005.

 

PRESS RELEASE


3rd Fraud Perpetrator Sentenced

Final participant in $1 million mortgage St. Louis fraud scheme sentenced

 
St. Louis, Mo. -- (Nov. 22, 2006) -- James McMullen was sentenced to 38 months in prison for his participation in a mortgage fraud scheme involving dozens of properties in south St. Louis and over one million dollars in losses. The developer of this scheme, Rodney Tate, was sentenced to almost five years in prison in October, United States Attorney Catherine L. Hanaway announced today.

“This office is committed to prosecuting mortgage fraud in any area, but this case is especially significant because it involved a “Weed and Seed” area of the city, where residents have been working hard to revitalize their community,” said Hanaway. “Weed and Seed is a Department of Justice initiative designed to “weed” out violent crime, drug use and gang activity from selected neighborhoods and to help prevent crime from recurring by “seeding” those sites with a wide variety of public and private efforts to develop them. The strategy integrates federal, state and local law enforcement and criminal justice efforts with human service, private and community resources all designed to maximize the impact of existing programs. The key element of the Weed and Seed strategy depends on improved coordination by police, community groups and social service agencies to work together to revitalize neighborhoods.”

Between January 1, 2004 and February 2006, McMullen and co-defendants Rodney Tate and Reginald Mays devised a scheme to purchase properties in St. Louis City for fair market value. McMullen would obtain a false appraisal inflating the value of the property from Mays, in exchange for a cash payment, then identify a "straw buyer" or nominal buyer of the property who would allow his or her name and information to be submitted as the buyer of these properties in exchange for cash payments, and purport to sell the properties to the straw buyers at inflated prices by preparing false loan applications which misstated the straw buyers' salary, employment history and financial assets and, usually the intention to occupy the property as a primary residence. In reliance upon these misrepresentations various financial institutions and mortgage brokers loaned them millions of dollars.

In one example, Tate had a person purchase a property at 3430 South Jefferson in the City of St. Louis for $300,000, which he had purchased for $95,000 only weeks earlier. This $300,000 purchase price was in excess of the fair market value of the property and was supported only by the false appraisal report prepared for a fee by Reginald Mays. Tate instructed the buyer to overstate her income and assets and claim the property as a primary residence on her loan application. As a result of these illegal activities, Jefferson Bank and Trust made a $210,000 loan secured only by property worth less than half that amount.

Over the course of the scheme, Tate pocketed hundreds of thousands of dollars in proceeds from these fraudulently obtained loans.

JAMES McMULLEN, St. Louis, was sentenced today to 38 months in prison and ordered to pay restitution.

Tate was sentenced to 57 months in prison and ordered to pay restitution of more than $1 million on October 20; and Mays was sentenced to three years probation in early November. All defendants appeared before Chief United States District Judge Carol E. Jackson.

Hanaway commended the work performed on the case by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation and Assistant United States Attorney Thomas Albus, who handled the case for the U.S. Attorney’s Office.

SOURCE: U.S. Attorney's Office Eastern District of Missouri

 
Mortgage Fraud Litigation

Q4-2012 | Q3-2012
Q2-2012 | Q1-2012

Q4-2011 | Q3-2011
Q2-2011 | Q1-2011

Q4-2010 | Q3-2010
Q2-2010 | Q1-2010

Q4-2009 | Q3-2009
Q2-2009 | Q1-2009

Q4-2008 | Q3-2008
Q2-2008 | Q1-2008

full-year 2007
Red Flags Rule
News about the Fair and Accurate Credit Transaction Act.
Analysis of Fraud Enforcement and Recovery Act
The Mortgage Graveyard
Reverse Mortgage Blog
Mortgage Compliance Newsletter
Free compliance newsletter from MortgageDaily.com.



Copyright © 2014 MortgageDaily.com
MortgageDaily.com Subscribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

pricing engine directory

wholesale lender directory

More Mortgage News Resources (MortgageDaily.com full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

free mortgage news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan officer compensation rule

loan originator compensation rule

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

sales blog

reverse mortgage news

secondary marketing

servicing news

subprime news

wholesale lenders

wireless mortgage news