London mortgage broker sentenced in mortgage fraud with US connection

In the following press release the Metropolitan Police (London, UK) announced that a fraudulent mortgage broker has been sentenced to two and a half years in prison following an investigation by financial investigators from the Metropolitan Police Service.

Olakunle Okubote (left), 50ys - 03/11/1961, of Broughton Avenue, Finchley N3 3EH was jailed and forced to hand over more than £23,000 on 24 February, following a five-week trial at Wood Green Crown Court.

“I am pleased the prosecution team were able to successfully conclude the criminal proceedings.”

The investigation began in 2008 when London Crime Squad identified a mortgage broker with a lavish lifestyle in a million pound property in Finchley, North London. He owned a Bentley and Land Rover. As a result, Territorial Policing Payback Unit commenced with a proactive financial investigation into the affairs of the broker, subsequently identified to be Olakunle Okubote trading as ‘First Channel’.

The mortgage broker assisted criminals to obtain mortgages providing them with false documents and information. He secured cash discounts on new builds, which he kept, with the knowledge of the conveyancing solicitors, ranging between £10,000-£20,000 on each property.

The lenders and borrowers were unaware, which resulted in the borrower obtaining a mortgage larger than the purchase price. He concealed his activities by transferring funds between bank accounts in various names and identities. The documents were verified by other brokers, believed in an attempt to conceal his involvement.

Okubote received £15,000 after securing a mortgage for Michael Kolawole. That person was identified to have been imprisoned for 18 years in America in the name of Kola Ajibade for Drug Trafficking.

Akin Olojo was arrested by the Territorial Support Group, based in Finchley, in possession of about £2,000 cash.

TSG Payback Unit commenced with financial enquiries into Akin Olojo’s financial affairs and discovered that he had obtained mortgages in two different names, one of which contained false employment and identity documents, brokered by Okubote.

Hertfordshire Police arrested two others in a connected prosecution, who had a mortgage brokered by Ola Okubote.

All of these investigations were joined, and enquiries were undertaken into the mortgage broker’s affairs.

The conveyancers have been independently dealt with by the Solicitors Regulatory Authority.

Olakunle Okubote, Michael Kolawole (aka Kola Ajibade) and Akin Olojo (aka Akin Latunji) were convicted after a five-week trial at Wood Green Crown Court.

Michael Kolawole, 51ys - 13/06/1960, of Winchester Close, SE17 was imprisoned for 12 months. He was ordered to pay £2,000 costs and a confiscation order is ongoing.

Akin Olojo, 28ys - 26/11/1983, of Foyle Road, N17 received a suspended sentence on the 13 January 2012. He was ordered to pay £2,000 costs and a confiscation order is ongoing.

Further civil proceedings are underway to remove all the other available assets from Okubote, whose assets are restrained.

Detective Sergeant Jason Aldridge, in charge of the investigation, said:

“Olakunle Okubote was a confident criminal. I am pleased that the prosecution team were able to successfully conclude the criminal proceedings, under the leadership of Jonathan Wright from Castle Chambers.

“We plan to take away all their available assets through confiscation and civil recovery to ensure that every available asset is taken away from these individuals.”

Alleged Philly slumlord charged in connection with mortgage fraud

In the following press release Zane David Memeger, United States Attorney for the Eastern District of Pennsylvania announced that Robert Coyle, Sr., 66, of Glassboro, New Jersey, was charged today by Indictment with four counts of loan fraud, announced United States Attorney Zane David Memeger. Coyle owned and/or rented more than 300 properties in Philadelphia and operated a real estate business out of 2332 E. Allegheny Avenue. Among his business entities were Landvest, LLP, Alivest, LLP, and Otay, LLC, to name few.

Robert Coyle, Snr - Coutesy of Philly.comAccording to the Indictment, Coyle, through his business entities, borrowed more than $3 million from East River Bank (“ERB”) and more than $6.6 million from Republic First Bank (“RFB”). Polonia Bank was a 49% participant in the ERB loans after settlement. The purpose of the loans was purportedly to refinance existing loans, make improvements on some of the properties Coyle owned, and/or to allow Coyle to pursue other real estate opportunities. Coyle pledged approximately 71 properties to secure the ERB loans and approximately 117 other properties to secure the RFB loan. The banks anticipated that the loans would be repaid through rental income that Coyle was collecting and, if necessary, through the sale of the collateral properties.

But the indictment alleges that Coyle did not hold good title for all of the properties he pledged since he had entered into various ownership agreements with the then current occupants of several of the properties. In addition, in submissions to the banks prior to settlement of the loans, Coyle allegedly inflated the amount of rent he was collecting on some of the properties and listed vacant properties as occupied. The indictment further alleges that Coyle submitted to the banks forged leases and fake letters to tenants that purported to raise their rent. The alleged fraud on the banks is more than $10 million.

If convicted the defendant faces a maximum possible sentence of 120 years in prison, five years of supervised release, $4 million in fines, and a $400 special assessment.

The case was investigated by the Federal Bureau of Investigation and the Economic and Cyber Crimes Unit of the Philadelphia District Attorney’s Office and is being prosecuted by Assistant United States Attorney Mary Kay Costello.

Three arrested in Duval County (FL) fraud allegations

In the following press release on Monday, March 5, 2012 Duval County (FL) Sheriff Rutherford announced the arrests of three suspects [Rhonda Johnson (R), Cleveland Stevens (L), and former Mayoral Candidate Warren Lee]. All four are alleged to be involved in a long-term investigation into squatters who [occupied and] then leased out residential properties they did not own.

Currently there is an active warrant out for outstanding suspect, Marcellous Dunbar (no picture).

Photo’s courtesy of Jacksonville Sheriff and Jacksonville.com (Lee).
The Sheriff’s press conference can be seen below.

A video news report from First Coast News can be seen below.

Anyone with any information about the whereabouts of this outstanding suspect or similar crimes taking place is asked to call the Jacksonville Sheriff’s Office at 904-630-0500 or email us at JSOCrimeTips@jaxsheriff.org. To remain anonymous and receive a possible reward, contact Crime Stoppers at 1-866-845-TIPS or email them at rewards@fccrimestoppers.com.

Blaine Murphy indicted in Cuyahoga County, accused of mortgage fraud

In the following press release Cuyahoga County Prosecutor Bill Mason announced that Blaine Murphy (aka Bryce Peters, III and Martin J. Franks) and Bryce Peters Financial Corporation, Inc. were indicted on charges of illegally “flipping” 235 houses in Cuyahoga County by filing forged deeds to these properties. Murphy, 43, of Naples, Florida, forged the deeds as an individual named Bryce Peters, III. The indictment includes properties located in 14 other Ohio counties.

Murphy (pictured left) was the key participant in this nationwide enterprise that includes real estate in many states with the most activity occurring in Ohio, Michigan, Pennsylvania, Missouri, and Texas.  From 2005 to 2010, the purpose of the enterprise was to make a quick profit by selling houses in Cuyahoga County, and the enterprise did so by filing forged deeds and engaging in related conduct. Of the 235 houses sold in Cuyahoga County, 186 properties were in Cleveland, 31 properties in East Cleveland, 5 properties in Warrensville Heights, 4 properties in Euclid, 3 properties in Cleveland Heights, 3 properties in Shaker Heights, 2 properties in Maple Heights, and 1 property in Garfield Heights. 96 properties fell into Tax Foreclosure for a total tax delinquency of $1,032,849.84.

Murphy and his company were indicted on charges of engaging in a pattern of corrupt activity (RICO), possessing criminal tools, money laundering, and tampering with records. Murphy is also indicted on charges of acting as an officer of an unlicensed foreign corporation, and operating an unlicensed foreign corporation. The indictment seeks forfeiture of the 79 properties currently owned by Murphy’scompany.  This is the first time a “houseflipper” has been charged for using fictitious identifications to forge deeds and other documents.  

The enterprise existed in two phases. First, acquisitions were made with little or no regard for the condition of each property. In his quest to make a fast profit, Murphy ignored property code violations and payments of taxes at the expense of these communities in Cuyahoga County. Secondly, Murphy sold these properties in bulk or individually for a quick profit to various buyers, essentially in the same manner as these properties were acquired.

The forgeries hid the real identity of Murphy and made it difficult, if not impossible, for communities in Cuyahoga County to make contact with the individual or individuals responsible for the condition and maintenance of the properties. In an attempt to combat repeated housing code violations, Cleveland Municipal Housing Court Judge Raymond Pianka held Murphy and his corporation in contempt of court and levied fines for failure to appear in the amount of $9.5 million dollars. These forgeries aided the defendants in avoiding detection. The Cleveland office ofthe FBI investigated this matter in cooperation with the Cuyahoga County Prosecutor’sOffice.

Cuyahoga County Prosecutor Bill Mason said, “Cuyahoga County has brought to justice an individual who is responsible for causing millions of dollars in damages and ruining whole neighborhoods across Ohio and the Midwest. Today is a triumph of justice over greed.”

The investigation of others who aided and abetted Blaine Murphy (aka BrycePeters, III – aka Martin J. Franks) and Bryce Peters Financial Corporation, Inc. continues.

Superseding indictment issued in Utah mortgage fraud allegations

In the following press release Carlie Christensen Acting United States Attorney for the District of Utah announced that a federal grand jury returned a 19-count superseding indictment Wednesday evening charging Portia R. Louder, age 40, and Chad Louder, age 42, both of Highland, with violations of federal law in connection with what the indictment alleges was a scheme to profit from loans fraudulently obtained from mortgage lenders. The superseding indictment also adds Portia Louder’s brother, Dustin Wilcox, age 35, of Highland, as a defendant in the case.

In the initial indictment returned in October 2011, Portia Louder was charged with three counts of false statements to financial institutions; three counts of wire fraud; and one count of money laundering. Chad Louder was charged with two counts of false statements to financial institutions. The initial indictment focused on three homes in Alpine, Draper, and Highland.

The new indictment, which adds four additional properties to the alleged scheme, charges Portia Louder with five counts of false statements to financial institutions; eight counts of wire fraud; three counts of money laundering; and one count of conspiracy. Chad Louder is now charged with four counts of false statements to financial institutions; four counts of wire fraud; three counts of money laundering; and one count of conspiracy. Wilcox faces one count of false statements to financial institutions; two counts of wire fraud; two counts of money laundering; and one count of conspiracy.

According to the indictment, the defendants targeted expensive homes for purchase. They looked for homes being sold by owners and often those that had not been listed on the Multiple Listing Service. This way, the indictment alleges, the defendants could, through the substitution of nominees and straw parties, raise the purchase price of a home without the lender’s learning of the sales price set by the owner. The indictment focuses on the purchase of seven homes in Alpine, Draper, and Highland.

According to the indictment, after finding a home to purchase or have purchased, the defendants offered to purchase the home at or near the seller’s asking price. The defendants, the indictment alleges, typically told or had someone tell the seller that there was a new buyer for the property who would purchase the home for substantially more than the original sales price, but that the original seller would get only the price agreed upon between the seller and a defendant or a nominee. Portia Louder typically used a straw party or nominee to form a joint venture with the original seller of a property. The joint venture, acting at the direction of Portia Louder, would become entitled to a payment from the loans eventually obtained at an artificially inflated price.

Portia Louder, according to the indictment, commissioned appraisals on properties even though she often was not listed as the purchaser or the seller. The indictment alleges she paid as much as $5,000 for an appraisal even though an appraisal on an average home would often cost $500 or less and an appraisal on a high end home often cost about $1,500. During 2006 through 2007, the indictment alleges she paid about $380,000 to appraisers.

By concealing the initial sales price, the defendants were able to artificially increase the prices of the homes disclosed to lenders. For example according to the indictment:

• The sellers of a property on [997] West Pfeifferhorn Drive in Alpine received $1,340,000 in June 2006 and the transaction closed for $2,205,000.
• The sellers of a property on [6021] Dry Creek Circle in Highland received $1,500,000 in September 2006 and the transaction closed for $2,500,000.
• The sellers of a property on [1747] Sage Hollow Drive in Draper agreed to sell for$1,095,000 on or about September 2006, and the transaction closed for $2,700,000 in April 2007.
• The sellers of a home on [354] Deerfield Drive in Alpine agreed to sell forapproximately $839,000 in January 2007 and the transaction closed in March 2007 for$950,000.
• The sellers of a home on [891] Healy Homestead Circle in Alpine agreed to sell for$900,000 in May 2007 and the transaction closed for $2,300,000 in July 2007.
• The sellers of a home on [381] East Wayne Court in Alpine agreed to sell for approximately $725,000 in late 2007 and the transaction closed for $1,585,000 in December 2007.
• The sellers of a home on [1814] Somerset Ridge Drive in Draper received $1,115,000 in December 2007 and the transaction closed for $2,400,000.

The indictment alleges Portia Louder recruited straw purchasers, including the defendant Chad Louder, as well as others, to submit applications to obtain mortgages on the properties listed in the indictment. These mortgage loan applications were false and fraudulent because, at times, the buyer was a straw buyer not purchasing the property for himself or herself but at the direction of Portia Louder so she could inflate loan proceeds from mortgage lenders; the straw buyer had not made a down payment or invested his or her own funds, transferring all of the financial risk in the purchase and loan transaction to the mortgage lender; the straw buyer was to be paid a kickback from the loan proceeds as an inducement to apply for the loan; the straw buyer had no intention of living in the house or making loan payments; the straw buyer had a materially smaller income than represented on the application; and the loan closing documentation created the false appearance that the straw buyer had made a down payment to purchase the property – among other things.

The indictment includes a notice of intent to seek criminal forfeiture in the amount of $3,900,000 million in currency received and diverted by Portia R. Louder in connection with the conduct alleged in the indictment. Prosecutors are seeking $2,450,000 million in currency received and diverted by Chad Louder and approximately $2,160,000 from Dustin Wilcox.

The potential maximum penalty for false statements to a financial institution is up to 30 years with a potential fine of up to $1 million. Wire fraud carries a potential penalty of up to 20 years in prison and money laundering is up to 10 years in prison. Conspiracy carries a potential penalty of up to 10 years in prison. These counts have potential fines of up to $250,000.

Indictments are not findings of guilt. Defendants charged in indictments are presumed innocent unless or until proven guilty in court.

The case is being investigated by special agents of the FBI and IRS Criminal Investigation and prosecuted by Assistant United States Attorneys in Salt Lake City.

Third defendent sentenced in Sexton Lofts (MN) condo fraud case.

In the following press release B. Todd Jones, United State Attorney for the District of Minnesota announced that in federal court, a 66-year-old Bloomington man was sentenced in connection with his participation in a $2.5-million mortgage fraud scheme that involved the sale of condominiums in the Sexton Lofts building in downtown Minneapolis.

United States District Court Judge Patrick J. Schiltz sentenced Gerald James Greenfield to 50 months in prison on one count of conspiracy to commit money laundering and fined Greenfield $10,000. In addition, Judge Schiltz ordered Greenfield to forfeit to the United States assets valued at hundreds of thousands of dollars which were involved in the money laundering conspiracy. Greenfield was indicted, along with Nicholas Ryan Delon Smith, on February 10, 2010, and pleaded guilty on May 3, 2010.

On January 25, 2011, Smith, age 32, of Prior Lake, was sentenced to 40 months on one count of conspiracy to commit mortgage fraud through the use of wires and one count of money laundering. He also pleaded guilty on May 3, 2010.

In his plea agreement, Greenfield admitted that beginning in September of 2006, he conspired with an individual by the name of Brett A. Thielen, and others, to launder proceeds of the mortgage fraud scheme Thielen was executing at Sexton Lofts. Pursuant to the scheme, Thielen sold condos during a market downturn by recruiting financially unqualified buyers and fraudulently inducing mortgage lenders to lend those buyers money. To further the scheme, the condo prices were artificially inflated, creating substantial profits that Thielen needed to hide. Greenfield admitted helping hide those profits, even while knowing they were derived from unlawful activity.

Specifically, Greenfield wired the illegal profits to an unindicted Australian attorney through whom he had previously laundered money. Then, at Thielen’s direction, Greenfield instructed that attorney to wire portions of those profits to other places to make it appear as if they came from legitimate sources. For example, Greenfield directed the Australian attorney to wire a substantial amount of the illegal funds to a brokerage firm for the purpose of purchasing stock in a company called Digital Town, Inc.

During the investigation into Greenfield’s possible wrongdoing, an undercover law enforcement officer met with him at Manny’s restaurant in Minneapolis on June 30, 2009. In his plea agreement, Greenfield admitted that while at the restaurant, he also agreed to assist the officer in laundering $50,000 in supposed drug trafficking profits by converting the funds to Digital Town stock.

As for Smith, he admitted participating in the mortgage fraud scheme from August of 2006 through April of 2007. During that time, he was the sole owner of Heloc, Inc., a mortgage brokerage company in Minneapolis. In that capacity, he falsified income and employment information about his straw buyers in an effort to convince lenders they were credit-worthy loan applicants. Smith also knew the prices of the condos were greatly inflated, and that those prices were supported by fraudulent appraisals.

For his participation in the scheme, Smith received kickbacks from loan proceeds following the sale of condo units. On December 5, 2006, Smith wire transferred $25,500 in illegal proceeds from his company’s bank account to a third party during a transaction to purchase an automobile.

On December 21, 2010, Thielen, age 43, of Savage, was sentenced to 27 months on one count of conspiracy to commit mortgage fraud through the use of wires and one count of money laundering.

This case is the result of an investigation by the Internal Revenue Service-Criminal Investigation Division. It is being prosecuted by Assistant U.S. Attorney David J. MacLaughlin.

Dunkirk, NY woman sentenced in $300,000 loan modification fee fraud

In the following press release by the FBI Field Office in Buffalo, NY U.S. Attorney William J. Hochul, Jr. announced today that Lori J. Macakanja, 35, of Dunkirk, New York, who was convicted of mail fraud and theft of government money, was sentenced to 72 months in prison and three years’ supervised release by U.S. District Court Judge Richard J. Arcara. Judge Arcara also ordered the defendant to pay $298,639.00 in restitution to the victims.

Courtesy of Buffalo News.comAssistant U.S. Attorney Trini E. Ross, who handled the case, stated that Macakanja, in her capacity as a housing counselor employed by HomeFront, Inc., inappropriately requested money from clients. The defendant told HomeFront clients that the money would be used toward loan modifications to prevent foreclosure on their homes. However, after receiving the funds, Macakanja used the money for her own personal use, including gambling, and failed to obtain the loan modifications for the victims. A total of 136 HomeFront clients were defrauded with losses totaling approximately $300,000. In addition, Macakanja also obtained federal grant monies from the Buffalo Urban Renewal Agency (BURA) for HomeFront clients. On two occasions, she diverted $2,000 worth of BURA money to pay her own personal mortgage.

“Many Americans are struggling to hold on to the American dream, ownership of a home,” said U.S. Attorney Hochul. “The victims turned to the defendant for help in keeping their home. Instead, the defendant abused their trust and stole their money. Unfortunately, because of the defendant’s actions, some of the victims lost their homes. Our office, along with our federal law enforcement partners, will work vigorously to protect federal funding targeted to help those who are struggling. We will also continue to prosecute those, like this defendant, who attempt to take advantage of those who are most vulnerable.”

“Lori Macakanja abused her position and violated the trust of distressed homeowners in the interest of personal gain,” said Cortez Richardson, Special Agent in Charge, U.S. Department of Housing and Urban Development, Office of Inspector General New York Region. “Her actions further jeopardized the assets of the Federal Housing Administration and unnecessarily complicated the lives and financial security of individuals already feeling the adverse impact of a volatile housing crisis. Today’s judicial action signals HUD’s Office of Inspector General’s firm commitment to working with our law enforcement partners to investigate and prosecute any individuals seeking to profit illegally from the nation’s mortgage crisis.”

“Macakanja preyed on the most vulnerable homeowners,” said Christy Romero, Deputy Special Inspector General for SIGTARP. “While an employee of a federally approved housing counselor, she illegally solicited and received payments from 136 homeowners facing foreclosure with the promise that the funds would be used to secure mortgage modifications. Little did the homeowners know, the payments were being used by Macakanja to support her gambling habit and to pay her own mortgage. SIGTARP will aggressively investigate and pursue those who exploit the federal government’s aid to homeowners under TARP and, with the help of its partners in law enforcement, ensure that they are brought to justice.”

SIGTARP investigates fraud, waste, and abuse related to HAMP and all other TARP-funded programs. HAMP encourages loan servicers and investors to modify mortgages to reduce the monthly payments of homeowners who are risk of default. There is no fee to homeowners to apply for a modification under HAMP.

The plea is the result of an investigation by the Mortgage Fraud Task Force of WNY, which includes agents and personnel from the U.S. Postal Inspection Service under the direction of Inspector in Charge Robert Bethel; the Housing and Urban Development Office of Inspector General, under the direction of Cortez Richardson, Special Agent in Charge, New York Region; SIGTARP, under the direction of Special Agent in Charge John Feiter; the United States Secret Service under the direction of Special Agent in Charge Tracy Gast; the Federal Bureau of Investigation under the direction of Special Agent in Charge Christopher M. Piehota; and the Internal Revenue Service under the direction of Special Agent in Charge Charles R. Pine. The Mortgage Fraud Task Force of WNY is led by the U.S. Attorney’s Office and also includes Veterans Affairs Office of Inspector General and the U.S. Bankruptcy Trustee.

Oregon DCBS revokes manaufactured home builders license because of fraud

In the following press release the Oregon Department of Consumer and Business Services announced that it had revoked the license of Fuqua Homes of Bend to sell manufactured homes, and fined the company $155,000 for failing to deliver on purchased homes or refund deposits to customers. The department, through its Building Codes Division, also decertified the company from producing homes.

Following an investigation prompted by consumer complaints, the department’s Division of Finance and Corporate Securities (DFCS) found the company had closed its manufacturing facilities in February 2011 but was still accepting customers’ deposits for home purchases. The company collected $500,000 through 26 deposits for the purchase of structures that were never built. Fuqua Homes accepted the deposits between October 2008 and August 2011.

“When violations of state law are discovered, it’s important for the department to take steps to ensure the fraud won’t continue,” said Patrick Allen, acting director of the Department of Consumer and Business Services.

The $155,000 penalty was for 26 violations ($5,000 each) for accepting the deposits and failing to either deliver on the homes or refund the money, and five violations of fraud at $5,000 each.

In one case, Fuqua Homes told a customer it would give him a discount if he paid for the home in full before production; the customer lost nearly $137,000 for a structure that was never built.

“This is a reminder that consumers should investigate a company before making a major financial purchase,” said David Tatman, administrator of DFCS. “While most businesses are honest and reputable, it’s still important to check with state regulators or the Federal Trade Commission about complaints.”

Fuqua Homes was operating a factory in Bend and a Eugene Super Sales Center in Coburg. Fuqua’s president and owner, Phillip R. Daniels, has been barred for five years from obtaining a license as a manufactured structure dealer or from working in an administrative or managerial capacity for any time of manufactured structures dealer.

Tatman urges consumers to verify the license of a dealer and investigate companies they are working with. Those who sell manufactured homes must be licensed in Oregon. Call the Division of Finance and Corporate Securities at 1-866-814-9710 (toll-free) or visit www.dfcs.oregon.gov.