David Saks: Woman Found Guilty in Mortgage Fraud; Cost Lenders More Than $900,000

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

Woman Found Guilty in Mortgage Fraud; Cost Lenders More Than $900,000

Maryland Woman Found Guilty in Mortgage Fraud Scheme That Cost Lenders More Than $900,000
She and Others Used Straw Buyers to Generate Fraudulent Loans; Actions Led to Evictions of Some Tenants

U.S. Attorney’s Office March 28, 2013
  • District of Columbia (202) 514-7566
 

WASHINGTON—LaFrances Dudley O’Neal, 49, of Clinton, Maryland, has been found guilty by a jury for her part in a mortgage fraud scheme that cost lenders more than $900,000.

The verdict was announced today by U.S. Attorney Ronald C. Machen, Jr.; Gary R. Barksdale, Inspector in Charge, Washington Division, U.S. Postal Inspection Service; Joseph W. Clarke, Special Agent in Charge of the Office of Inspector General of the U.S. Department of Housing and Urban Development; Valerie Parlave, Assistant Director in Charge of the FBI’s Washington Field Office; and William P. White, Commissioner of the District of Columbia Department of Insurance, Securities and Banking.

O’Neal was found guilty by the jury on March 27, 2013, of four felony charges, including conspiracy and bank fraud, after a two-week trial in the U.S. District Court for the District of Columbia. The Honorable Reggie B. Walton scheduled sentencing for June 20, 2013.

According to the government’s evidence at trial, O’Neal and others identified District of Columbia area homes and straw buyers to obtain mortgages through false loan applications, forged documents, and fraudulent settlements. Co-conspirators acted as a mortgage broker, title, and escrow agent, and other professionals to assist O’Neal with tricking the mortgage lenders and banks into lending $2.6 million in mortgage loans on the belief that the straw buyers had the means and the willingness to pay the mortgages.

Every one of the mortgages fell into default, and the lenders were forced to foreclosure with an aggregate loss to the lenders in excess of over $900,000.

According to the government’s evidence, the title and escrow companies paid O’Neal from the fraudulently obtained loan proceeds, at times using fraudulent “invoices” that falsely stated that renovation work had recently been completed and that money was due at settlement. As a result of these false invoices and inaccurate settlement statements, title and escrow agents turned over more than $400,000 of fraudulent loan proceeds to O’Neal.

In spite of promising the straw buyers that she would pay the mortgage and in spite of receiving rental income from the D.C. Housing Authority and their client tenants, O’Neal failed to pay the mortgages on all of these properties, and the lenders foreclosed on the houses with the result being the tenants were evicted.

Two other defendants earlier pled guilty to charges related to the scheme and are awaiting sentencing. Donald M. Ramsey, 45, a mortgage broker from Alexandria, Virginia, and Tania Firmani, 46, a title and escrow agent from Chesapeake Beach, Maryland, each pled guilty to a charge of conspiracy to commit bank and mail fraud.

“Mortgage fraud is a significant law enforcement priority for our office that has serious repercussions to our economy beyond the losses suffered by the financial institutions,” said U.S. Attorney Machen. “LaFrances Dudley O’Neal’s scheme not only cost lenders more than $900,000 but also led to foreclosures and evictions. This prosecution shows our resolve to bring to justice those who would seek to commit mortgage fraud for personal gain.”

“Ms. O’Neal took advantage of mortgage lenders and banks by falsely leading them to believe that they were supporting homeownership in the District of Columbia; instead, she bilked them out of hundreds of thousands of dollars,” said Assistant Director in Charge Parlave. “There is no safe harbor for criminals in this business, and the FBI will continue to work with our federal, state, and local partners to eradicate fraud within the real estate and mortgage industries.”

In announcing the verdict, U.S. Attorney Machen, Inspector in Charge Barksdale, Special Agent in Charge Clarke, Assistant Director in Charge Parlave and Commissioner White praised those who worked on the case from the U.S. Postal Inspection Service, U.S. Department of Housing and Urban Development-Office of Inspector General; the FBI’s Washington Field Office; the District of Columbia Department of Insurance, Securities, and Banking; and the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including: Financial Analyst Crystal Boodoo; Paralegal Specialists Donna Galindo, Corrine Laxman, Diane Hayes, Lenisse Edloe, Shanna Hays, Nicole Wattelet; former Paralegal Specialist Sarah Reis; Litigation Services Specialist Kimberly Smith; Law Interns Nicole Audet and Jason Navia; and Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section. Finally, they acknowledged the work of Assistant U.S. Attorney Virginia Cheatham, who 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 2 commentsDavid Saks • March 29 2013 12:17PM

Comments

David, glad to see these parasites put away...at least I hope that's what happens.  Do you have any idea what the penalty would or could be?

Posted by Nick T Pappas, Madison & Huntsville Alabama Real Estate Resource (Assoc. Broker/Broker ABR, CRS, SFR, e-Pro, @Homes Realty Group, @HomesBirmingham & Providence Property Mgmnt, LLC Huntsville AL) over 6 years ago

Federal sentencing guidelines will most likely determine her fate, Nick. Glad to hear from you. Have a fine holiday weekend.

Posted by David Saks ((retired)) over 6 years ago

This blog does not allow anonymous comments