Prosecutor Bill Mason issued a further press release today regarding the arraignments of various defendants, please click here to read it.

Prosecutor Mason said, “These criminals are a scourge on our communities—-leaving them devastated by foreclosure and blight. Their fraud and thievery will not go unpunished.”

In the following press release Cuyahoga County Prosecutor Bill Mason announced that Corritha J. Wells, Clarissa Foster, and Bettie Simpson were collectively found guilty by a jury of 66 mortgage fraud offenses in a seven day trial. This trial involved only 9 of the 38 properties charged in the indictment. Sentencing is set for August 11, 2008 at 10:30 am courtroom 17 B.

Prosecutor Mason said, “Wells and Foster are major players who were caught conducting their rampant mortgage fraud schemes throughout this county. Their fate will only get dimmer when we prosecute them for the remaining houses in this indictment.”

Clarissa Foster, 35, of Macedonia, was the President of Shaker Title Services Corp, which is now out of business. Foster’s mother and employee, Bettie Simpson, 60, of Macedonia, was the Operations Manager for Shaker Title. Corritha J. Wells, 41, of Cleveland, was a former licensed mortgage loan officer with the now defunct Ace Home Loan, Inc.   

All three participated in a mortgage fraud scam that enabled five buyers, including Wells, to purchase 9 houses for a total of $846,000 using loans totaling $746,450. One house was located in Garfield Heights, one in East Cleveland, and seven in Cleveland. Five of these houses fell into foreclosure. Property information is listed below.

Wells submitted fraudulent loan applications and participated in using third party down payment providers unbeknownst to the lender, Argent Mortgage Company of California. The documents submitted to Argent stated the buyers had bank accounts with certain amounts and that Foster and Simpson were providing the down payment money. But the accounts were bogus. Further, Foster and Simpson provided the third down payment money, and withheld that information from the lender when Shaker Title closed the loan.  

These three defendants were indicted in a large mortgage fraud case totaling over $3,000,000 in fraudulent loans in January 2007 that involved 38 properties and 62 defendants. For these 9 properties, Wells was charged with 44 counts and was convicted on all counts; Foster was charged with 27 counts and convicted of 20 counts; and Simpson was charged with 12 counts and convicted of 2 counts. They are the last defendants in this case; all of the charges against the other defendants have been resolved. Due to the large number of properties involved with Foster, Wells and Simpson, the court limited the number of properties presented to the jury at one time. The remaining houses and charges against these defendants will be tried at a later date.

Cuyahoga County Prosecutor Bill Mason announced that Shaker Title President Clarissa Foster was sentenced to a total of 7 years in prison for mortgage fraud activity after two trials involving 31 houses. Corritha Wells, the mortgage broker for these houses, was also sentenced to 7 years in prison on August 21, 2008. Twenty-six (26) or 84% of the 31 houses fell into foreclosure. See below for information on the properties.

Clarissa Foster, 35, of Macedonia, was the president of Shaker Title Services, which is now defunct. Her mother, Betty Simpson, 60, of Macedonia, was the Operations Manager for Shaker Title. Corritha J. (C.J.) Wells, 42 of Cleveland, was a mortgage broker for Ace Home Loan, Inc., now defunct.

After a six day trial starting on August 25, 2008, the jury found Clarissa Foster guilty on all 44 mortgage fraud counts concerning 22 houses; the jury found her mother, Bettie Simpson, not guilty. Foster and Simpson participated in a mortgage fraud scam that enabled 13 buyers to purchase 22 houses for a total of $1,214,000 using fraudulent loans totaling $956,800. Seventeen houses were located in Cleveland and five in East Cleveland. Eighteen or 82% of these houses fell into mortgage or tax foreclosure.

Foster submitted fraudulent third party down payments unbeknownst to the lender, Argent Mortgage Company of California. The documents – copies of official bank checks - submitted to Argent stated the buyers made the down payments when, in fact, other parties, one of whom pled guilty and testified against Foster, actually provided the down payment money. When the deal closed, this money, plus a fee, was paid back to these providers by the sellers, who were also indicted and who pled guilty. The lender was also not aware that the down payment money went back to these providers. The jury found that Foster, but not Simpson, deceived the lender by informing the lender that the buyer paid the money and by withholding the what actually occurred from the lender when Shaker Title closed the loan.

In June 2008, Foster and Simpson went to trial with mortgage broker Corritha Wells. On June 11, 2008, all three were each found guilty of mortgage fraud related charges concerning the purchase of 9 houses for a total of $846,000 using loans totaling $746,450. One house was located in Garfield Heights, one in East Cleveland, and seven in Cleveland. Six of these houses fell into mortgage or tax foreclosure. On August 11, 2008, Foster was sentenced to five years in prison and ordered to pay $100,000 as restitution to the lender. Simpson was sentenced to three years community control sanctions and ordered to pay $1,000 as restitution to the lender.

On August 21, 2008, Wells was sentenced to 7 years in prison and ordered to pay $100,000 as restitution to the lender. Wells, who was found guilty by a jury on 44 counts of mortgage fraud related offenses involving 9 houses, decided to not to go trial on the remaining 22 houses. She pled guilty to 22 counts of mortgage fraud offenses.

Wells, Foster and Simpson were indicted in a large mortgage fraud case totaling over $3,000,000 in fraudulent loans in January 2007 that involved 38 properties and 62 defendants. They are the last defendants in this case to be tried; all of the charges against the other defendants have been resolved.

The cases against the following people were dismissed:

JUDITH BRZOSKA [Case dismissed 11/26/2007];
ROBERT HOWARD [Case dismissed on 7/13/2007];
JULIANNE HOWARD [Case dismissed on 7/13/2007]
CORRITHA J WELLS [Case dismissed 11/20/2007]