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Entries in Kentucky (20)

Wednesday, October 14, 2009 at 12:12 PM
12:12PM

Louisville mortgage broker indicted in mortgage fraud allegations

DateWednesday, October 14, 2009 at 12:12PM

In the following press release Candace G. Hill, United States Attorney for the Western District of Kentucky announced that Richard Hild, age 38, of Louisville, Kentucky was arraigned on 9/25/2009.  A federal grand jury in Louisville, Kentucky previously returned an indictment on September 23, 2009 charging Hild with one count each of stealing, conspiracy to commit wire and mail fraud.

Press Release   Hild Indictment
 Otis Information Whitfield Information

Editor Note - This case appears to be related to the Vermont “Highgate Manor” case

The Indictment alleges that from June 2007 through February 2008, Hild while working as a mortgage broker, conspired with others to fraudulently obtain residential mortgage loans by misrepresenting the financial information of borrowers, and by providing fraudulent documents in support of loan applications, and during the course of the conspiracy, used and caused to be used interstate wires and the United States mail.   Two of Hild’s co-conspirators Michael Otis and Chris Whitfield previously pleaded guilty to felony Informations containing similar charges.  The conspiracy involved fraudulent loans to which the co-defendants pleaded guilty involved 34 loans totaling over $10 million.  A sentencing date has not yet been set for Whitfield or Otis.

In the event of a conviction, the maximum potential penalties are 20 years’ imprisonment, a $250,000 fine, and supervised release for a period of 3 years.

The case is being prosecuted by Assistant United States Attorney Bryan R. Calhoun, and it was investigated by the United States Postal Inspection Service and the United States Secret Service.

The matter is currently schedule for a jury trial on November 3, 2009, in Louisville, Kentucky.

Print ArticlePrint Article | | | | AuthorThe Editor - Ian Shuter - ACFE, DMS
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Friday, March 20, 2009 at 8:59 AM
8:59AM

Louisville settlement agent accused of theft of mortgage proceeds

DateFriday, March 20, 2009 at 8:59AM

In the following press release Candace G. Hill, Acting United States Attorney for the Western District of Kentucky, announced today that an Information has been filed in the United States Court for the Western District of Kentucky, Louisville Division, charging Wavy Curtis Shain, age 26, of Louisville, Kentucky, with nine counts of wire fraud, and one count of bank fraud.

According to the allegations contained in the Information, Shain used businesses he owned and operated, Derby City Title and Capital Distribution, LLC, to perpetrate fraudulent schemes on various lending institutions and mortgage companies. The schemes perpetrated by Shain included misappropriating substantial amounts of loan proceeds received by him on behalf of borrowers using Derby City Title to obtain loans to purchase homes, and, by doing so, failing to pay off existing loans and mortgage held by the sellers of those houses. Additionally, Shain is charged with preparing false and fraudulent notes and mortgages purportedly associated with the purchase of houses and selling these instruments to willing buyers. Lastly, Shain is charged in the Information with perpetrating a check kiting scheme using business and personal accounts maintained with US Bank and BB&T Bank.

[Ed. note the following propert are mentioned in the information:

2740 West Main Street, Louisville, KY
2717 West Market Street, Louisville, KY
2752 West Main Street, Louisville, KY
198 Crescent Ave, Unit 12, Louisville, KY]

Shain is scheduled to appear for arraignment on April 21, 2009, at 9:30 a.m., in United States District Court in Louisville, Kentucky. In the event of a conviction, the maximum potential penalties are 150 years imprisonment, a $3,250,000 fine, and supervised release for a period of 5 years.

The case is being prosecuted by Assistant United States Attorney James R. Lesousky, Jr., and it was investigated by the Federal Bureau of Investigation and the Office of the Kentucky Attorney General, Consumer Protection Division.

Print ArticlePrint Article | | | | AuthorThe Editor - Ian Shuter - ACFE, DMS
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Sunday, April 27, 2008 at 9:20 PM
9:20PM

Three Ohio men indicted in mortgage fraud

DateSunday, April 27, 2008 at 9:20PM

In the following press release James A. Zerhusen, Acting United States Attorney for the Eastern District of Kentucky announced that three Ohio residents were indicted today for conspiracy to commit wire fraud. The indictment alleges that William R. Bowling Jr., 46, of Cincinnati, Georgia Bowling, 64, of Franklin, and Gregg E. Russell, 54, of Middletown devised a complicated scheme to defraud Countrywide Home Loans.

The Indictment alleges that William Bowling Jr., the buyer/borrower, purchased 24 investment properties in Kettering, Ohio and that the paperwork submitted to the lender, Countrywide Home Loans, represented that the down-payment was coming from Bowling Jr. The 24 purchases each originated and were processed through Countrywide Home Loan’s office in Ft. Mitchell, Ky.

The Indictment also alleges that Georgia Bowling, who acted as the real estate agent for Bowling Jr., caused for false representations regarding alleged repair-work to be made on the loan documents that were submitted to Countrywide. These false representations allowed the conspirators to use loan funds to provide for Bowling Jr.’s required down-payment on all 24 purchases. The Indictment also alleges that Gregg Russell, Georgia Bowling’s boss at the Middletown real estate brokerage in Ohio at which they worked, participated in the conspiracy. He allegedly obtained the cashier’s checks that were presented at each of the 24 closings knowing they would be presented as Bowling Jr.’s funds for the down payment when in fact they were not.

James A. Zerhusen, Acting United States Attorney for the Eastern District of Kentucky, and Paul R. Johnson, Special Agent in Charge, United States Secret Service, jointly made the announcement today after a federal grand jury in Covington, Ky., returned the Indictment.

The investigation preceding the Indictment was conducted by the United States Secret Service. The Indictment was presented to the grand jury by Assistant United States Attorney Benjamin G. Dusing.

The defendants’ appearance before the United States District Court has not yet been set. If convicted, each defendant faces a maximum prison sentence of 20 years in prison. However, any sentence following conviction would be imposed by the court after consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of sentences.

Print ArticlePrint Article | | | | AuthorThe Editor - Ian Shuter - ACFE, DMS
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Monday, July 16, 2007 at 9:36 AM
9:36AM

4 indicted in Louisville, KY mortgage fraud allegations

DateMonday, July 16, 2007 at 9:36AM

In the following press release U.S. Attorney David L. Huber of the Western District of Kentucky announced that a federal grand jury in Louisville returned an indictment against Edward “Ted” House, of Louisville, Kentucky; Nathan Frisbie, of Louisville, Kentucky; Khaliad Raheem, a/k/a Dwayne Cross, of Louisville, Kentucky; and Jerry Crenshaw, of Louisville, Kentucky, with conspiracy to commit wire fraud and bank fraud.

The Indictment alleges that between January 1, 2000, and May 30, 2003, House, Frisbie, Raheem, and Crenshaw conspired with one another to defraud two residential mortgage lenders. The indictment identifies 24 separate fraudulent loan transactions, totaling approximately $1.5 million, in which the named defendants participated. The defendants defrauded the mortgage lenders through various means. Generally, they provided the lenders with false borrower background information in order to fraudulently induce the funding of individual loans. The defendants would provide lenders with false employment and financial information of an applicant in order to get a loan approved. In addition, they would often misrepresent the payment of earnest money or a deposit from a buyer to a seller. The lenders relied on all theses false representations in order to make its decision whether to fund a loan.

For example, House, Frisbie, and, Raheem were fraudulently involved in a $63,750 mortgage loan for the purchase of property located at 801 Dearborn Street in Louisville, Kentucky. In order to fraudulently induce the lender, ABN Mortgage Group, to fund the loan, they provided false and fraudulent information in support of the loan. The fraudulent information included the following: false and fraudulent employment information of the buyer and a closing statement that reflects a fraudulent sales price in that no earnest money or deposit was actually paid by the buyer. Count 1 of the Indictment alleges 21 separate instances in which the defendants conspired to defraud mortgage lenders through manners similar to the above example.

The indictment further charges the defendants with counts of wire fraud and bank fraud. For example, Count 2 charges House, Frisbie, and Crenshaw with obtaining a $59,850 loan for property located at 2712 Algonquin Parkway in Louisville, Kentucky, from National City Mortgage Company under false and fraudulent pretenses. They defrauded National City by providing false information regarding the buyer’s employment and financial information, as well as misrepresenting funds paid by the buyer to the seller. Counts 3 through 5 charge the defendants with similar schemes involving different properties and different lenders.

The full list of properties mentioned in the indictment in Louisville, KY are:
2712 Algonquin Parkway
750 S. 43rd Street
219 S. 28th Street
2521 Elliot Street
2404 Elliot Lane
3814 Vermont Ave
3029 Virginia Ave
1842 Dumesnil St
801 Dearborn St
2318 Burnett Ave
2205 Woodland Ave
720 Sutcliffe
105 North Shawnee Terrace
3807 W Muhammad Ali Blvd
311 E Burnet Ave
436 34th Street
1821 W. Lee Street
4148 W. Market Street
671 S. 39th Street
1210 S. 15th Street
612 Campbellsville, Hodgenville, KY

The case is being prosecuted by Assistant United States Attorney Bryan Calhoun, and it was investigated by the Federal Bureau of Investigation.

House, Frisbie, Raheem, and Crenshaw are scheduled to appear for arraignment before the United States Magistrate Judge on July 18, 2007, at 9:15 a.m., in Louisville, Kentucky.

Resources:
1. US Attorney’s press release
2. Indictment

Print ArticlePrint Article | | | | AuthorThe Editor - Ian Shuter - ACFE, DMS
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Thursday, January 25, 2007 at 8:33 PM
8:33PM

4 people who stole ID's arrested after closing of fraudulent loan

DateThursday, January 25, 2007 at 8:33PM

huber.jpgIn the following press release David L. Huber, (pictured left) United States Attorney for the Western District of Kentucky, announced that on January 24, 2007, a federal Grand Jury in Louisville returned an Indictment charging JAMES HARDISON , age 21 of 8403 Robing Hill Drive, Louisville, Kentucky and FREDDIE JOHNSON , age 38, WILLIE COLLINS , age 75, and MARILYN RAINEY , age 59, all of Chicago, Illinois, with conspiracy to commit wire fraud and bank fraud in violation of 18 U.S.C.§ 1349 and aggravated identity theft in violation of 18 U.S.C. § 1028A.

The Indictment alleges allege that Johnson, Hardison, Rainey , and Collins conspired together to steal the identity of the owner of 2411 Longest Avenue to facilitate two fraudulent loan closings on the property. Johnson recruited Rainey and Collins to participate in the scheme and drove them from Chicago to Louisville on several occasions. To effectuate their scheme, they also stole the identity of a Southern Indiana man so that Hardison could pose as a legitimate buyer at the closing, while Rainey posed as the actual owner of the property. Using these stolen identities, Hardison , and Rainey participated in two separate closings on this same property.

At the first closing they were able to obtain approximately $290,000 in loan proceeds. They attempted to obtain a second closing and loan on the property in approximately the same amount, but were arrested by the Louisville Metropolitan Police Department before they could withdraw these funds.

U.S. Attorney Huber praised “the quick action by LMPD and the joint investigation with the U.S. Secret Service.”

If convicted, the maximum potential penalties for Collins are 34 years imprisonment, a $1,500,000 fine, and supervised release for a period of up to 5 years. If convicted the maximum penalties for Hardison, Collins , and Rainey are 32 years imprisonment, a $1,250,000 fine, and supervised release for a period of up to 5 years.

The case is being prosecuted by Assistant United States Attorney Bryan Calhoun, and it was investigated by the United States Secret Service.

Johnson, Hardison, Collins, and Rainey are scheduled to appear for arraignment before the United States Magistrate Judge on February 20, 2007, at 9:15 a.m., in Louisville, Kentucky.

Print ArticlePrint Article | | Reference1 Reference | | | AuthorThe Editor - Ian Shuter - ACFE, DMS
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Saturday, December 30, 2006 at 2:15 PM
2:15PM

Three arrested in ID theft and mortgage fraud case

DateSaturday, December 30, 2006 at 2:15PM

In the following press release David L. Huber, United States Attorney for the Western District of Kentucky, announced that on December 29, 2006, a Complaint and Arrest Warrant were filed charging JAMES C. HARDISON of Louisville, Kentucky, with aggravated identity theft in violation of 18 U.S.C. § 1028A and mail fraud in violation of 18 U.S.C. § 1341 both in connection with the fraudulent obtaining of mortgage loans on a Cherokee Triangle residence.

Hardison was arrested by the United States Secret Service last night and made his initial appearance in U.S. District Court today before the Honorable Magistrate Judge Dave Whalin. Complaints were also filed in the United States District Court Clerk’s Office on December 28, 2006, against Willie Collins and Marilyn Rainey, both of Chicago, Illinois. Both remain in the custody of the Louisville Metropolitan Police Department and are awaiting transfer to federal custody for their initial appearances.

More particularly, the Complaints allege that Hardison, Rainey, and Collins stole the identity of the owner of 2411 Longest Avenue to facilitate two fraudulent loan closings on the property. To effectuate their scheme, they also stole the identity of a Southern Indiana man so that Hardison could pose as a buyer at the closing, while Rainey posed as the actual owner of the property. Using these stolen identities, Hardison, Rainey, and Collins participated in two separate closings on this same property. At the first closing they were able to obtain approximately $290,000 in loan proceeds. They attempted to obtain a second closing and loan on the property in the same amount, but were arrested by the Louisville Metropolitan Police Department before they could withdraw these funds.

The Louisville Courier-Journal reports that the scam unraveled Tuesday when a fraud investigator from BB&T grew suspicious of Rainey’s identification and contacted police as she and Collins tried to withdraw about $290,000 from one of the accounts, authorities said. They were arrested at the bank.

The scam involved Rainey allegedly assuming the identity of Sally Riggs, the owner of the Longest Avenue home, they said. Then Hardison allegedly assumed the identity of Jonathan Baker, a real man who lives in Georgetown, Ind., who was supposedly buying the Riggses’ home. Authorities say Baker was not involved in the scam.

The Hardison is scheduled to appear for arraignment before the United States Magistrate Judge on January 3, 2007, at 3:30 a.m., in Louisville, Kentucky. The case is being prosecuted by Assistant United States Attorney Bryan Calhoun, and it was investigated by the United States Secret Service and the Louisville Metropolitan Police Department.

Print ArticlePrint Article | | | | AuthorThe Editor - Ian Shuter - ACFE, DMS
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Friday, November 17, 2006 at 8:17 AM
8:17AM

Louisville closing attorney pleads guilty in mortgage fraud

DateFriday, November 17, 2006 at 8:17AM

The Louisville Business First reports that a federal grand jury has indicted Louisville attorney Dean Sexton with conspiracy to defraud multiple mortgage lenders. The indictment charges that Sexton conspired with other unnamed individuals to cause out-of-state residential mortgage lenders to fund fraudulent loans in excess of $1.5 million, according to a news release from David L. Huber, U.S. Attorney for the Western District of Kentucky.

Sexton allegedly created loan documents, such as loan applications and HUD-1 settlement agreements, that contained false information relating to borrowers’ employment, income, assets, down payment and credit information.

The indictment also charges that Sexton closed four loans on two properties that he owned by concealing his ownership by providing a fake deed in someone else’s name and by creating a false payment history.

According to the indictment Sexton was involved in the following property transactions all in Louisville, KY:

2041 Bashford Manor Lane
4131 West Broadway
618 S 41st Street,
619 S 41st Street
3505 Muhammed Ali Blvd
2019 Woodland Avenue
404 N 387th Street
3231 Greenwood Avenue
3746 Greenwood Avenue
1364 Cypress Street
2113 Wilson Avenue
1026b Cecil Avenue
2225 Strathmoor Lane
6513 Ridge Cliff Road

Click here for the Indictment

Print ArticlePrint Article | | Reference1 Reference | | | AuthorThe Editor - Ian Shuter - ACFE, DMS
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Monday, March 6, 2006 at 9:48 AM
9:48AM

Former Pastor sentenced in fraud case

DateMonday, March 6, 2006 at 9:48AM

Covington, KY - Frances E. Catron, Acting United States Attorney for the Eastern District of Kentucky; Larry R. Willis, Acting Special Agent in Charge, Federal Bureau of Investigation; and Cleve Daniels, Special Agent in Charge, Internal Revenue Service, jointly announced today that LARRY J. DAVIS, age 58, of Cold Spring, Kentucky, was sentenced in United States District Court, Covington Division. Click here for a copy of the indictment.

Larry Davis.jpg

DAVIS served as the Pastor of the First Baptist Church, Cold Spring, Kentucky, for approximately 20 years. He resigned after pleading guilty on October 6, 2005, to a violation of 18 U.S.C. § 1014 (Making a False Statement in Connection with a Loan Application) and 26 U.S.C. § 7201 ( Income Tax Evasion). From 2000 through 2003, DAVIS converted between $500,000.00 to $730,000.00 of First Baptist Church funds to his own use and evaded paying income taxes on the money. In addition, while acting as the self-appointed general contractor for First Baptist Church, DAVIS made false statements through documentation he submitted to Fifth Third Bank in order to obtain an additional $500,000.00 on an already existing construction loan. First Baptist Church had obtained the original loan to fund the construction of a new sanctuary.


Picture by Patrick Reddy courtesy of NKY.com

DAVIS was sentenced by Judge David Bunning to 30 months incarceration with five years of supervised release to follow. DAVIS was immediately remanded to the custody of the U.S. Marshal. The case was investigated by the Internal Revenue Service and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney, Robert K. McBride.

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The information reproduced here has been obtained from various public sources and has been compiled as a service to those interested in the area of mortgage fraud. The accuracy of the information has not been independently verified and as a result, no negative inferences about individuals referenced in the information or their involvement in any scheme to participate in mortgage fraud should be concluded as a result.