David Saks: March 2012

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


Man Gets 10 Years for Large-Scale Mortgage Fraud Conspiracy

Michael Staaf, 42, New Brighton, Pennsylvania, has been sentenced by United States District Judge David S. Cercone to 10 years of imprisonment and five years of supervised release on his conviction of conspiracy to commit bank fraud, mail fraud, and wire fraud and money laundering conspiracy.

According to information presented to the court, Staaf operated Beaver Financial Services, which was a mortgage broker business, and several other companies that owned and managed real estate.

The investigation has revealed that Staaf, and several other individuals engaged in a large-scale mortgage fraud and money laundering scheme involving tens of millions of dollars and dozens of mainly commercial properties.

One aspect of the scheme involved the purchase of properties owned by entities that Staaf controlled through an employee. The purchases were financed through loans. In connection with the loan applications, Staaf and others submitted fraudulent information related to the financial position of the borrower/purchaser, fraudulent appraisals that overstated the value of the collateral, and other documents that contained other material misrepresentations.

There were also second loans associated with some of the properties in which Staaf and others refinanced the earlier purchases. Again, in connection with the refinancings, Staaf and others submitted fraudulent loan applications and other fraudulent documents, including appraisals, to the lenders.

The investigation further revealed that, particularly in connection with commercial properties, Staaf engaged in a scheme in which he would "sell" commercial property owned by an entity he controlled to another entity that he controlled at highly elevated prices. The purchases were financed through fraudulent loan applications and through the submission of fraudulent documents, such as tax returns, rent rolls, leases, financial statements, and appraisals. The investigation revealed that Staaf directed the closing agents at U.S. Settlement Services to misdirect funds directed to payoff existing liens on properties to Staaf and in turn Staaf deposited those funds into various entities' bank accounts controlled by Staaf.

The investigation further revealed that Staaf altered invoices directed to one of the entities controlled by Staaf by inflating the cost of the work listed on the original invoices to make it falsely appear as though improvements had been made to the properties serving as collateral for the loans.

In terms of the money laundering, the investigation revealed that Staaf and his co-conspirators used various means to conceal the source and ownership of the illegally obtained money. Basically, nothing was in Staaf's names, but all of the money eventually went to his benefit. He used nominee accounts, shell corporations, and other schemes to conceal his ownership of the proceeds of the fraud and to make if more difficult to track the proceeds of the fraud.

United States Attorney David J. Hickton announced the sentence.

Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Mortgage Fraud Task Force for the investigation leading to the successful prosecution of Staaf. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service - Criminal Investigation; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.

source: 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



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 • March 28 2012 06:30AM
Man Gets 10 Years for Large-Scale Mortgage Fraud Conspiracy Michael Staaf 42, New Brighton, Pennsylvania, has been sentenced by United States District Judge David S. Cercone to 10 years of imprisonment and five years of supervised release on… more
Former NBA Player Indicted for Real Estate Ponzi Scheme C. Tate George 43, Newark, New Jersey, former NBA basketball player and the CEO of purported real estate development firm The George Group was indicted by a Newark grand jury for… more
Mortgage Broker Sentenced to 10 Years in Prison for Massive Fraud Scheme U. S. Attorney’s Office March 26, 2012 Western District of Pennsylvania (412) 644-3500 &… more
Lender Representative Sentenced for Mortgage Fraud Scheme U. S. Attorney’s Office March 27, 2012 Eastern District of Virginia (757) 441-6331 &… more
New York Financial Investor Pleads Guilty to Bid Rigging at Municipal Tax Lien Auctions in New Jersey U. S. Department of Justice March 27, 2012 Office of Public Affairs (202) 514-2007… more
Real Estate Practice : Lesson 1590
#1590 If the seller agrees to include the dishwasher in the sale of the home for 250 dollars the seller should include this item in the HUD-1 report. Is this true or false &… more
Real Estate Practice : Lesson 1589
#1589 When a residential appraiser starts looking for comparables and a sales comparison approach is used he's interested in homes that have been occupied for at least two out of the last… more
Real Estate Practice : Lesson 1588
#1588 A contract to build a new home is signed with a builder to build a luxury home costing 675 thousand dollars in a neighborhood of homes valued 150 thousand dollars and less. … more
Real Estate Practice : Lesson 1587
#1587 When we speak of an appraiser collecting data which is accumulated in a general manner the appraiser has conducted an analysis of the building as well as analyzed the site. … more
Real Estate Practice : Lesson 1586
#1586 An owner of a multi-family property thinks that a hot tub area with a shower would be a nice addition to the work-out area on the property. He's asked an… more