David Saks: Two Cal Residents Get Prison for Computer Theft from Online Broker

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Two Cal Residents Get Prison for Computer Theft from Online Broker

Two California Residents Sentenced to Prison

for Computer Theft from Charlotte-Based Online

Mortgage Broker

U.S. Attorney’s Office August 27, 2014
  • Western District of North Carolina (704) 344-6222

CHARLOTTE, NC—U.S. District Judge Robert J. Conrad, Jr. sentenced two California residents to prison on Tuesday, August 26, 2014, for their role involving computer theft from a nation-wide online mortgage broker (the “company”), announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.

Brian Matthew Rich, 40, of Laguna Beach, Calif.,

was sentenced to 24 months in prison, followed by two years of supervised release.

Marcus Alan Avritt, 42, of Seal Beach, Calif.

was sentenced to 15 months in prison and two years of supervised release.

Judge Conrad also ordered both defendants to pay restitution to the company, the amount of which will be determined by the court at a later date.

John A. Strong, Special Agent in Charge for the Federal Bureau of Investigation, Charlotte Division, joins U.S. Attorney Tompkins in making today’s announcement.

According to filed court documents and court proceedings, Rich and Avritt were the co-owners of Chapman Capital, Inc., a California-based mortgage broker firm also doing business as “Home Loan Consultants.”

Court records show that Rich and Avritt purchased unauthorized access to the victim company’s database, which contained data on consumers who had used the company’s online mortgage lending exchange network to apply for new and refinanced mortgage loans, from 2007 until January 2008.

According to court records, Rich and Avritt purchased the unauthorized access from another California-based mortgage broker and co-defendant, Steve Kenneth Rosene. Court records indicate that Rosene had obtained the unauthorized computer access from the fourth member of the conspiracy, Jarrod Beddingfield, who was a former employee of the victim company.

According to court records, the victim company’s online mortgage lending exchange network facilitated millions of consumer loan requests for new and refinanced mortgages.

Mortgage loan consumers used the Internet to access the company’s network and to complete online mortgage application forms containing contact, non-public financial data and other information necessary to the mortgage application process.

Court records indicate that the information submitted through this online process comprised the company’s mortgage referral information, known individually as “mortgage leads.”

According to court documents, the mortgage referral information, which contained thousands of such individual mortgage leads, was valuable information because it consisted of mortgage loan consumers who were ready, willing and financially-able to close on mortgage loans, refinancing loans and home equity loans, court records show.

By obtaining this information without paying the requisite fees and dues, Rich and Avritt avoided paying the victim company an estimated $745,152 for the stolen mortgage leads.

Avrit and Rich pleaded guilty in August and September 2013, respectively, to one count of conspiracy to illegally access and use the company’s customer database.

The other two co-defendants, Rosene and Beddingfield, have also pleaded guilty to the same charge.

Rosene has also pleaded guilty to one count of unauthorized computer access/exceeded authorized access for commercial advantage and financial gain.

Rosene and Beddingfield will be sentenced by the court at a later date.

Avritt and Rich have been released on bond and will be ordered to the report to the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.

The investigation was handled by the FBI. This prosecution is handled by Assistant United States Attorneys Tom O’Malley and Ben Bain-Creed of the U.S. Attorney’s Office in Charlotte.

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Comment balloon 6 commentsDavid Saks • August 28 2014 01:32PM

Comments

Wow I had several ex employees (back in the day before nationwide licensing came into play) do this same thing to me and I turned them in but due to the amount of few transactions the attorneyt general did not prosecute?

Sad and taught me the system favors the criminal unless they are really brazen and stupid like these guys

Posted by David Shamansky, Creative, Aggressive & 560 FICO - OK, Colorado Mtg (US Mortgages - David Shamansky) over 5 years ago

Sort of like dirt cops who take down the social security numbers of traffic violators, then turn around and use the stolen information to apply for bogus loans, David, like this creep:

http://activerain.com/blogsview/4465633/dirty-cop-sentenced-in-identity-theft-scheme-

 

Posted by David Saks ((retired)) over 5 years ago

Glad to see them caught and sentenced.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) over 5 years ago

Yes, indeed, Gabe. We thank the Almighty !

Posted by David Saks ((retired)) over 5 years ago

David, This one is a scary one and is cause for concern because this could happen again with a different set of players.

Posted by Sam Miller, Knox County Ohio Real Estate Specialist (RE/MAX Stars Realty) about 5 years ago

It's common. These swindlers just got caught. Thanks, Sam.

Posted by David Saks ((retired)) about 5 years ago

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