David Saks: November 2011

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

APPRAISER GUILTY OF MORTGAGE FRAUD

Appraiser Admits Role in Mortgage Fraud Scheme

Ryan Daryl Krutzig, 31, Maple Grove, Minnesota, a real estate appraiser, pleaded guilty to charges connected to a $1.8 million mortgage fraud scheme that involved 28 properties.

Krutzig specifically pleaded guilty to one count of conspiracy to commit wire fraud. Krutzig, who was indicted along with Jesse Scott Hoffman, 32, St. Cloud, Minnesota, on June 14, 2011, entered his plea before United States District Court Judge Richard H. Kyle, in St. Paul, Minnesota.

In his plea agreement, Krutzig, who owned and operated US Appraisal Management, Maple Grove, Minnesota, admitted that from March through June of 2006, he conspired with others to commit mortgage fraud. He admittedly purchased, along with others, a residential property but failed to disclose to the mortgage lender that US Appraisal had handled the appraisal. As part of the appraisal process, Krutzig prepared and approved required paperwork for the lender, acknowledging in part that he had no present or prospective interest in the property.

In addition, on March 28, 2006, Krutzig and others purchased a property in the 3600 block, Bryant Avenue North, Minneapolis, Minnesota. The property was listed in the name of another individual, although Krutzig had a financial interest in it and again had US Appraisal handle the appraisal. On June 29, 2006, the property was sold for $209,900 and again US Appraisal managed the appraisal. Krutzig received a portion of the sale proceeds. Afterward, the property went into foreclosure. In all, the property loss amount to $173,900.

On September 15, 2011, Hoffman pleaded guilty to one count of wire fraud. In his plea agreement, the real estate agent for Stellar Realty admitted that from November of 2005 through December of 2006, he conspired with others, including Thomas Hunter and Frederick Deen, co-owners of Legacy Lending, a mortgage brokerage company, to obtain mortgage loan proceeds through fraud.

In addition, Hoffman admitted concealing payments from mortgage proceeds to the straw buyers of various properties. The co-conspirators recruited straw buyers to purchase real estate for which mortgage loans were obtained for dollar amounts substantially larger than the true values of the properties involved. Hoffman also admitted acting as the straw buyers' "agent" in numerous transactions, facilitating the transactions, knowing they were fraudulent.

Krutzig, through US Appraisal, inflated appraisals, while Hunter and Deen provided the fraudulent loan applications to potential lenders for loan underwriting.

Hoffman was paid approximately $166,000 in commission payments on 14 false transactions, worth approximately $9 million in total loan proceeds. At least $900,000 of that was paid to the co-conspirators. In March of 2010,

Deen, 31, was sentenced to 24 months in prison for his role in the scheme. In September of 2010, Hunter, 32, was sentenced to 40 months in prison.

For his crime, Hoffman faces a potential maximum penalty of 20 years in prison, while Krutzig faces a potential maximum penalty of five years. Judge Kyle will determine their sentences at a future hearing. This case is the result of an investigation by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Christian S. Wilton.

This law enforcement action is in part sponsored by the interagency Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. It includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch and, with state and local partners, investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.

Courtesy Mortgage Fraud Blog




David Saks



Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

 

Click "HERE" For Today's Question

 

 

TheListen Now!

David Saks Show

Saturday Nite

9pm-12am Central

University of Memphis

WUMR

 

Support
America's Hobby

Click Elvis

Mr.Saks' participation in ActiveRain ended April 13, 2015.

His blog archives will remain online.

May God bless you.

Comment balloon 0 commentsDavid Saks • November 23 2011 01:59AM
APPRAISER GUILTY OF MORTGAGE FRAUD
share
Appraiser Admits Role in Mortgage Fraud Scheme Ryan Daryl Krutzig 31, Maple Grove, Minnesota, a real estate appraiser, pleaded guilty to charges connected to a $1. 8 million mortgage fraud scheme that involved 28 properties. … more
TITLE OFFICERS INDICTED FOR DOCUMENT FRAUD
share
First Robo-Signing Indictment Handed Down Gary Trafford and Gerri Sheppard both title officers, are the subject of a 606 count indictment for allegedly directing and supervising a robo-signing scheme which resulted in the filing of tens of… more
MAN ARRESTED FOR SWINDLING INVESTORS / FORECLOSURE FRAUD
share
Man Arrested for Promising Investors He Would Flip Foreclosures ohn Wesley Martynec 36, Long Beach, California, was arrested on charges of stealing $302, 000 from investors by fraudulently promising to buy and re-sell foreclosed homes for a… more
BANKER GETS SIX YEARS IN PRISON FOR LOAN FRAUD
share
Banker Gets 6 Years for Loan Fraud S. Pope Cleghorn, Jr. 39, Villa Rica, Georgia, was sentenced by United States District Judge Timothy C. Batten, Sr. to serve 6 years in federal prison on charges of bank fraud in connection with a real… more
MAN ADMITS SCAM INVOLVING 20 PROPERTIES
share
Man Admits Scam Involving 20 Properties Chad Evans 37, Brookville, Indiana, pleaded guilty to one count of bank fraud and one count of money laundering. Evans faces a maximum penalty of 30 years in federal prison for the bank fraud charge… more
NOTARY PLEADS GUILTY TO FRAUD
share
Notary in Robo-Signing Case Pleads Guilty Tracy Lawrence 43, a local notary, has pled guilty to one count of notarizing the signature of an individual not in her presence, a gross misdemeanor in violation of NRS 240. 155. … more
MAN SENTENCED FOR MORTGAGE FRAUD SCHEME INVOLVING 200 PROPERTIES
share
Man Sentenced for Scheme Involving 200 Properties Nathan Daniel Jesh 34, Rosemount, Minnesota, was sentenced for his role in a mortgage fraud scheme involving at least 200 properties, principally in north Minneapolis, and mortgage proceeds… more
Time to Enjoy Turkey and Manischewitz
share
Happy Holidays -David- more
Are You a Real Estate Agent or a Chauffeur
share
Do your clients get a free ride and tour of the subdivision in your sedan on Sunday while their children are screaming and rubbing their chocolate-stained hands on the upholstery of the back seat of your… more
Strange You Don't Hear The Word "Pre-approval" Much…
share
What is pre-approval Well, in short, it's a lender's practice of approving a borrower for a determined loan amount. This in turn allows the buyer to search for a home with the confidence they need, along… more