David Saks: April 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

MEMBERS OF BANK FRAUD RING SENTENCED IN $3.7 MILLION SCAM INVOLVING HELOCS

Members of Bank Fraud Ring Sentenced in $3.7 Million Scam

U.S. Attorney’s Office April 27, 2012
  • Northern District of Georgia (404) 581-6000
, , , ,
 

ATLANTA—After three days of hearings, United States District Judge William S. Duffey, Jr. today concluded the sentencings of six co-conspirators involved in a $3.7 million dollar bank fraud ring involving home equity lines of credit (HELOCs). Among those sentenced were two of the ringleaders: Otis Bernard Livingston, 44, of Gulfport, Mississippi; and Dionne Michelle Whitted, 37, of Castle Hayne, North Carolina; a prolific straw borrower, Shalena Sutherlin, 27, of Douglasville, Georgia; a forger of false financial documents, Todd Ivery, 43, of Kennesaw, Georgia; former bank employee, Hung Quoc Nguyen, 30, of Buford, Georgia; and a recruiter, Catasha Browning, 36, of Douglasville, Georgia.

“This fraud scheme, like so many, was based on greed and lies,” said United States Attorney Sally Quillian Yates. “The conspirators designed an insidious scam to target banks and local home owners by using homes to secure loans, many times without the owners’ knowledge. We remain committed to safeguarding our financial institutions and their customers from such financial predators.”

According to United States Attorney Yates and information presented in the public record: Between 2006-2007, Whitted operated a company known as “Mastermind Events” in Conyers, Georgia, which was supposed to host seminars, including foreign currency exchange (FOREX) trading training events. Livingston and Whitted, the leaders of the conspiracy, recruited so-called “straw” borrowers, including Sutherlin, who would present themselves to banks as if they were the true owners of property, when, in fact, they were acting without the knowledge of the true owner and were funneling the proceeds back to the schemers. Eventually, Sutherlin evolved beyond a straw borrower to become the president of Mastermind Events, working with Livingston and Whitted on recruiting still more straw borrowers, obtaining false financial documents, submitting the financial information to the banks, and dealing with both bank employees and the straw borrowers.

During the course of the conspiracy, Whitted, Livingston, and Sutherlin made various misrepresentations to convince other straw borrowers to apply for home equity lines of credit (HELOC). Most of these misrepresentations centered on the notion that the defendants’ lucrative FOREX trading business would generate more than enough returns to repay all of the loans along with profits for all. This was a lie, and most of the loans went into default.

The fraudulent activity of the coconspirators was extensive.

Whitted and Sutherlin forged quit claim deeds on 18 different residential parcels of property which belonged to home owners, some of whom were unaware of the scheme. Whitted and Sutherlin submitted the deeds along with false financial information in support of applications for 25 HELOCs with Wachovia, Bank of America, and Washington Mutual and received in excess of $3.7 million dollars. Whitted and Sutherlin purchased false financial documents, including tax returns, W-2s, and pay stubs–from Ivery and submitted them to the banks on behalf of the straws. Whitted, Sutherlin, and Livingston also bribed Nguyen, a former Bank of America employee, to facilitate more than $1.4 million worth of fraudulent HELOCs, giving him cash, meals, a resort gift card, and diamond rings. Working with Whitted, Browning recruited a straw borrower to obtain over $380,000 in fraudulent HELOCs. None of the straw borrowers had valid title to the properties.

Over the course of the sentencing hearings, Judge Duffey imposed the following sentences:

Whitted was sentenced to five years, two months in prison to be followed by five years of supervised release, during which she must perform 150 hours of community service, and she was ordered to pay $3,486,508.46 in restitution.

Livingston was sentenced to five years, 11 months in prison to be followed by five years of supervised release, during which he must perform 150 hours of community service, and was ordered to pay $2,956,043.97 in restitution.

Ivery was sentenced to four years, seven months in prison to be followed by five years of supervised release, during which he must perform 100 hours of community service, and was ordered to pay $1,662,425.69 in restitution.

Sutherlin was sentenced to two years, 10 months in prison to be followed by five years of supervised release during, which she must perform 75 hours of community service, and was ordered to pay $2,040,638.67 in restitution.

Nguyen was sentenced to two years, six months in prison to be followed by five years of supervised release, during which he must perform 150 hours of community service, and was ordered to pay $1,425,896.19 in restitution.

Browning was sentenced to one year, two months in prison to be followed by three years of supervised release during which she must perform 60 hours of community service, and was ordered to pay $360,026.43 in restitution.

Livington, Whitted, Sutherlin, and Ivery previously pleaded guilty to making false statements to federally insured banks in connection with obtaining HELOCs. Nguyen pleaded guilty to receiving two diamond rings worth over $8,000 as a reward for facilitating a series of fraud loan applications for HELOCs while he was a senior personal banker at Bank of America. Browning pleaded guilty to conspiracy to commit bank fraud and make false statements to federally insured banks.

This case was investigated by special agents of the Federal Bureau of Investigation and United States postal inspectors.

Assistant United States Attorneys David Leta and Nick Oldham prosecuted the case.

source: FBI



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 • April 27 2012 03:45PM
MEMBERS OF BANK FRAUD RING SENTENCED IN $3. 7 MILLION SCAM INVOLVING…
share
Members of Bank Fraud Ring Sentenced in $3. 7 Million Scam U. S. Attorney’s Office April 27, 2012 Northern District of Georgia (404) 581-6000 &… more
TWO NORTHERN CALIFORNIA REAL ESTATE INVESTORS PLEAD GUILTY TO BID…
share
Two Northern California Real Estate Investors Agree to Plead Guilty to Bid Rigging at Public Foreclosure Auctions Investigation Has Yielded 22 Plea Agreements to Date U. S. Department of Justice April 26,… more
REAL ESTATE INVESTOR CONVICTED BY FEDERAL JURY OF RUNNING A REAL…
share
Real Estate Investor Convicted of Running Ponzi Scheme Joseph Angelo Sivigliano 79, Oklahoma City, Oklahoma, was convicted by a federal jury of conspiracy, wire fraud, and money laundering in connection with a real estate investment Ponzi… more
FORECLOSURE RESCUER SUED FOR FAILING TO DELIVER PROMISES
share
Foreclosure Rescuer Sued for Failing to Deliver Christopher Rojas Irvine, California, is the subject of a civil lawsuit for running a foreclosure rescue operation that used multiple business names and failed to deliver on its promises to… more
REAL ESTATE INVESTOR SENTENCED TO NEARLY EIGHT AND A HALF YEARS IN…
share
Investor Sentenced for Cash Back Mortgage Scam Eitan Maximov 40, a citizen of Israel and lawful permanent resident of the United States, was sentenced by U. S. District Judge David G. Campbell to nearly eight and half years in federal prison… more
ORCHESTRATOR OF STRAW BUYER SCAM GETS 21 MONTHS IN PRISON
share
Orchestrator of Straw Buyer Scam Sentenced Jorge Abbud 33, Dover, New Jersey, a former employee of a Parsippany, New Jersey mortgage lender who admitted taking $138, 402 in illegitimate proceeds of multiple home sales as a result of a… more
ALLEGED LOAN MODIFICATION SCAMMER ARRESTED
share
Alleged Loan Modification Scammer Arrested Stephen Vitalich 46, has been arrested on charges of theft. The criminal complaint allleges Vitalich, doing business as Consumer Loan Excellence of America, LLC or NBMS of America, LLC promised… more
REAL ESTATE ATTORNEY, LOAN PROCESSOR AND LOAN OFFICER PLEAD GUILTY TO…
share
Lawyer, Loan Office and Loan Processor Admit $9M Fraud Eric Finger 47, Mineola, New York, a real estate attorney, Reginald Johnson 38, St. Albans, New York, a mortgage loan officer, and Denise Parks 46, Olive Branch, Mississippi, a… more
REAL ESTATE INVESTOR ADMITS FORECLOSURE BID RIGGING
share
Real Estate Investor Admits Foreclosure Bid Rigging Lawrence B. Stacy Mobile, Alabama, a real estate investor, has agreed to plead guilty and to serve prison time for his role in conspiracies to rig bids and commit mail fraud at public real… more
MOTHER SENTENCED TO EIGHT YEARS IN PRISON FOR REAL ESTATE FRAUD,…
share
Mother Sentenced for Forgery and Straw Buyer Conspiracy Sushama Devi Lohia 74, Newport Beach, California, a mother convicted of conspiring with her two daughters and son-in-law to commit over $16 million in real estate fraud by forging… more