In the following press release Don DeGabrielle, U.S. Attorney for the Southern District of Texas announced that a federal grand jury sitting in Houston has indicted five individuals in a 12-count indictment with devising a scheme to defraud residential mortgage lenders by misstating facts relevant to the lending decisions. FBI Houston Special Agent-in-Charge Andrew R. Bland III and Rodney E. Clarke, Special Agent-In-Charge of the Houston office of the Internal Revenue Service Criminal Investigations Division (IRS-CI), joined in the announcement earlier today.

The indictment alleges that Anthony Wayne Hawkins, 48, Brandon Alonzo Crenshaw, 27, Nehemiah Jamal Douglas, 28, Babette Jammer, 47, and David Vasser, 59, engaged in a mail and wire fraud conspiracy which resulted in the defendants and their co-conspirators fraudulently obtaining more than $17 million in loan proceeds. The defendants and their co-conspirators are accused of recruiting individuals to purchase residential properties with the intent to deceive mortgage lenders concerning the borrower’s ability and incentive to repay the loans. According to the indictment, falsified documents were prepared and provided to the mortgage lenders to support loan applications.

“Those who seek to take advantage of the American Dream of home ownership and those who prey upon others in these dire economic times will most certainly be held accountable,” U.S. Attorney DeGabrielle said.

“The FBI remains committed to continuing its efforts to vigorously address mortgage fraud and ensure that the strength and integrity of the nation’s financial sector are sustained,” said Bland. “Moreover, it is imperative that those who engage in this pernicious crime, and thereby undermine the economic vitality of our communities, are held fully accountable for their actions.”

“Mortgage fraud, like all financial crimes, threatens the overall health of our financial institutions and erodes the integrity of our tax system,” Clarke said. “Additionally, these types of crimes drive buyers into foreclosure, leave lenders burdened with bad loans and neighborhoods with abandoned and deteriorating properties. IRS Criminal Investigation is committed to working with its law enforcement partners to pursue individuals who commit these types of crimes.”

All five defendants have been arrested by special agents of the FBI and IRS-CI and are expected to appear before a U.S. Magistrate Judge at 2:00 p.m. today. Count one, charging conspiracy to commit mail and wire fraud, and counts two through six, alleging wire fraud, each carry a possible maximum penalty of 20 years in prison and a $250,000 fine.

Hawkins, Crenshaw, Douglas and Vasser are also charged in counts seven through twelve with engaging in monetary transactions with the proceeds of the scheme and the conspiracy to do so. The indictment alleges that bank accounts were opened in business entity names to deposit and transfer the fraudulently obtained loan proceeds. The maximum possible penalty for a conviction under counts seven through twelve is 10 years in prison and a $250,000 fine.

The criminal charges are the result of a joint investigation being conducted by agents of the FBI and IRS-CI. Assistant U.S. Attorney Melissa Annis is prosecuting the case.

An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.

Update on Thursday, March 5, 2009 at 5:31PM by The Editor - Ian Shuter - ACFE, DMS

Babette Jammer, 47, of Houston, has pleaded guilty to mail and wire fraud conspiracy charges, acting United States Attorney Tim Johnson announced today.

At a hearing this morning before United States District Judge Nancy F. Atlas, Jammer admitted to conspiring with others to defraud residential mortgage lenders by misstating facts relevant to the lending decisions. Jammer assisted loan officers at two Houston area mortgage broker firms, Motown Mortgage Group and Central Capital Financial Group, in preparing fraudulent documents used to induce mortgage lenders to provide 100% financing for homes the borrower’s falsely claimed were to be their primary residences. Jammer created false Internal Revenue Service documents, including W-2 forms and tax returns among other false documents, which were provided to the lenders.

Update on Tuesday, April 7, 2009 at 10:52AM by The Editor - Ian Shuter - ACFE, DMS

A former loan officer for Motown Mortgage Group and Central Capital Financial Group has pleaded guilty to conspiring to commit wire and mail fraud and laundering the proceeds of the fraud through a financial institution for his role in a mortgage fraud scheme, acting United States Attorney Tim Johnson announced today.

Brandon Alanzo Crenshaw, 28, of Houston, pleaded guilty Wednesday, April 1, 2009, to mail and wire fraud conspiracy charges and money laundering charges. At a hearing before United States District Judge Nancy F. Atlas, Crenshaw admitted to conspiring with others to defraud residential mortgage lenders by misstating facts relevant to the lending decisions over a 3 ½ year period beginning in late 2003. Crenshaw worked as a loan officer at two Houston area mortgage broker firms, Motown Mortgage Group and Central Capital Financial Group, where fraudulent loan applications and other fraudulent documents were prepared to induce mortgage lenders to provide 100% financing for homes the borrower’s falsely claimed were to be their primary residences. Crenshaw purchased homes using false and fraudulent information concerning his assets and liabilities and he recruited others to do the same.

FBI Press Release

Update on Monday, April 13, 2009 at 7:21AM by The Editor - Ian Shuter - ACFE, DMS

On April 9, 2009 the US Attorney announced that Nehemiah Jamal Douglas, 28, of Houston, has pleaded guilty to mail and wire fraud conspiracy and money laundering charges, acting United States Attorney Tim Johnson announced today. Douglas admitted to conspiring with others to defraud residential mortgage lenders by misstating facts relevant to the lending decisions.

Douglas worked as a loan officer at two Houston area mortgage broker firms, Motown Mortgage Group and Central Capital Financial Group, where fraudulent loan applications and other fraudulent documents were prepared to induce mortgage lenders to provide 100% financing for homes the borrower’s falsely claimed were to be their primary residences. Douglas himself purchased five homes using false and fraudulent information concerning his assets and liabilities and he recruited others to do the same.

Click here for the full press release.