In the following press release the FBI in Birmingham, AL it was announced that Donald Moulton, Sr., 47, was indicted in the U.S. District Court for mail fraud, false statements in loan applications, aggravated identity theft, misuse and false representations of social security numbers. This indictment is announced today by U.S. Attorney Alice H. Martin, Martin Phanco, U.S. Postal Inspection Service, Special Agent in Charge and Carmen S. Adams, Federal Bureau of Investigation, Special Agent in Charge.

“In partnership with a new Identity Fraud Task Force you can expect to see more indictments on aggravated identity theft,” stated U.S. Attorney Alice H. Martin.

From July 2003 to September 2004 Moulton engaged in a scheme to defraud American Express in connection with a corporate account he opened in the name of Magic City, Inc. In support of that application, Moulton submitted a corporate tax return purporting to document the financial condition of Magic City. That document was false and fraudulent, and in fact had never been filed with the Internal Revenue Service. From August 2003 until September 2004, Moulton incurred in excess of $200,000 in charges on the account.

During that same time period, Moulton is also charged with making repeated false representations about his social security number for the purpose of realizing financial gain. He sought mortgage loans on parcels of real property located in Birmingham, Alabama, from RBMG, Inc., and on a separate occasion from Wachovia Mortgage Corporation. As to the latter, Moulton is also charged with aggravated identity theft because he used the identity of another person while making the application to Wachovia.

“Investigators within the banking and credit industry are alert for fraudulent activity and eventually the trail leads to the identification of fraudsters.” stated Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation. “We are fully committed to the investigation of white collar crimes in the Northern District of Alabama.”

Moulton now faces three to thirty years in federal prison and fines of $250,000 for each of the eight counts charged.

The investigation of this matter was conducted special agents from the United States Postal Inspection Service and the Federal Bureau of Investigation. Assistant United States Attorney William C. Athanas is prosecuting the matter on behalf of the U.S. Government.

 Members of the public are reminded that an indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.

Resources:
Press Relesase

In the following press release Alice H. Martin, United States Attorney for the Northern District of Alabama announced that LADON CHRISON BAFFIELD has been indicted by a federal grand jury for conspiracy to defraud the U.S. Government with respect to claims and wire fraud. 

BAFFIELD, 42, of Madison, Alabama, owned and operated LCB Financial Services (LCB) and Titanium Mortgage.  BAFFIELD through LCB engaged in the business of preparing and filing income tax returns for taxpayers.  As a part of his business BAFFIELD offered refund anticipation loans to taxpayers in the amount of their income tax refunds, less a fee to LCB.

“The ‘quick money’ from Refund Anticipation Loans is appealing to dishonest tax preparers and some citizens.  I wonder if defendants can even remember how they spent the money once they go to jail,” said U. S. Attorney Alice H. Martin.

The indictment alleges in Count One that from April 2002 until about June 2002, BAFFIELD conspired with Walter Sullivan, who owned Just That Fast Tax, to defraud the U.S. Government by obtaining and aiding to obtain the payment and allowance of false and fictitious and otherwise fraudulent claims.  They filed false returns by amending 1999 and 2000 federal income tax returns claiming refunds which LCB knew the taxpayers were not entitled to receive, without the knowledge of the taxpayers who had employed LCB.  BAFFIELD caused about eighteen false amended returns to be filed and falsely claimed about $30,406 from the U.S. Government. 

Count Two alleges that in June 2005, BAFFIELD committed wire fraud in that he transmitted false information through Titanium Mortgage to Finance America in an effort to obtain a mortgage loan.  Finance America sought verification of a business license included in the mortgage loan package, and learned from the Madison County license department that the business license had been altered. 

The following administrative actions have been taken against Mortgage Brokers by the Alabama State Banking Department during the year 2006.
Click on the broker name to read the relevant order.

Cease and Desist Orders:

AAA Benefit Sales Inc dba Loan Pro Co, Inc
Alliance Home Mortgage Co, Inc (Gerald T. George and Robin Taylor)
Country Home Creative Services, Inc – October 2006
M & R Marketing – October 2006
McAllister Mortgage Group – August 2006
Standberry & Associates – August 2006
Stevenson Mortgage Consulting, LLC (Cheryl Stevenson) – August 2006

Broker License Revoked

American Home Mortgage Services, LLC – August 2006
Construction Mortgage Corporation – October 2006
First Trust Mortgage Corp of America – October 2006
Gulfside Mortgage Inc – October 2006
Houchins Mortgage Company Inc – August 2006
Mid-South Mortgage, LLC – August 2006
RN Realty and Associates (Nicole Ward) – September 2006

The Alabama State Banking website can be found at http://www.bank.state.al.us/

The following is an Associated Press article taken from the Mobile Times Daily.

Federal agents have arrested four Mobile County residents accused in a secret indictment of conning a bank out of nearly $1 million in a mortgage scam. FBI spokesman Craig Dahle said federal officers, along with investigators from the Alabama attorney general’s office, arrested each of the defendants in their homes Tuesday, when the indictment was unsealed.

They were identified as Darlene Hill, 49, Joycelyn Lucas Easter, 48, Antonio Devon Harrison, 27, all of Mobile, and Kathy Frye, 38, of Eight Mile. All the defendants pleaded innocent.

The indictment charges each suspect with wire and loan fraud. Prosecutors also seek to force the forfeiture of property purchased with the loans and money in various bank accounts, the Press-Register reported. The defendants are accused of using the names of unwitting participants to obtain mortgages from Regions Bank.

They submitted fraudulent information to get the loans and then used part of the money to purchase at least three Mobile properties. The loans total $996,000, according to the indictment, but Dahle suggested the actual number could be higher.

Defense lawyer Al Pennington, who represents Hill, said his client has been cooperating with law enforcement investigators since July. Pennington predicted she will be exonerated.

Update on Thursday, August 24, 2006 at 03:48PM by The Editor - Ian Shuter

The Press Register reports that two Mobile County residents on Tuesday pleaded guilty in connection with an alleged mortgage fraud scam totaling nearly $1 million. Antonio Devon Harrison, 27, of Mobile pleaded guilty to one count of wire fraud and one count of loan fraud. Under terms his plea bargain, federal prosecutors in Mobile have agreed to recommend a sentence at the low end of advisory sentencing guidelines.

Kathy Frye, 38, of Eight Mile pleaded guilty to misprision of a felony, which means she knew about a crime and failed to report it. The plea caps her punishment at a maximum of three years, and prosecutors indicated they would recommend a sentence at the low end of guidelines, which would be far less.

Update on Wednesday, September 20, 2006 at 03:14PM by The Editor - Ian Shuter

The Press Register reports that on September 9, 2006 Joycelyn Easter, 49, pleaded guilty to one count each of wire fraud and loan fraud. As part of her plea bargain, Easter has agreed to cooperate with investigators and, if asked, testify against co-defendant Darlene Hill.

BIRMINGHAM, AL - United States Attorney Alice H. Martin of the Northern District of Alabama and Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation announced today that JULIA KATHERINE CLARK has been indicted by a federal grand jury for the destruction or removal of property to prevent seizure. CLARK, 47, of Madison, Alabama was charged in a one-count indictment filed today at U. S. District Court in Birmingham.

The Indictment charges JULIA K. CLARK with fraudulently obtaining a mortgage on a property which she knew was being seized in a civil forfeiture in federal court due to its use in the storage and distribution of illegal drugs. The maximum sentence for this offense is five years in prison and a $250,000 fine.

“By putting a mortgage on this drug stash house which was subject to forfeiture, she tried to cheat the United States and the bank,” said U.S. Attorney Alice H. Martin.

Special Agents of the Federal Bureau of Investigation worked this case with the Asset Forfeiture Unit of the United States Attorney’s Office. Assistant United States Attorney W. Sander Callahan is prosecuting this case. Members of the public are reminded that the indictment contains only charges. A defendant is presumed innocent of the charges and it will be the government’s burden to prove a defendant’s guilt beyond a reasonable doubt at trial.

The US Dept of Justice in Birmingham, AL released the following press release - United States Attorney Alice H. Martin of the Northern District of Alabama and Christopher Murphy, Special Agent in Charge, U.S. Secret Service announced today that SIMP ROBERT GODDARD has been indicted by a federal grand jury for using, with intent to defraud, means of identification of other people and the unauthorized use of access devices.

Click here to read the indictment

GODDARD, 38, of Lincoln, AL was charged in a two-count indictment filed today at U. S. District Court in Birmingham. GODDARD was employed as a mortgage processing officer during the time period covering the charged conduct.

Count One of the indictment charges that Goddard made unauthorized use of other people’s names, dates of birth and Social Security numbers in order to obtain credit cards which he then used to purchase goods and services totaling more than $20,000. Count Two charges that Goddard used unauthorized credit cards that were either lost, stolen or fraudulently obtained to obtain goods and services totaling over $1,000. The charged conduct occurred between January and May of 2004.

GODDARD faces a maximum sentence of fifteen years on Count One and a maximum sentence of ten years on Count Two. Upon conviction GODDARD could also be fined a maximum fine of $500,000.

“Identity theft and the financial problems created by such conduct are serious crimes that this office will vigorously prosecute in order to combat its harm.” stated U.S. Attorney Alice H. Martin.

US DOJ Press Release – February 2, 2005

BIRMINGHAM, AL - United States Attorney Alice H. Martin of the Northern District of Alabama, William Creel, Special Agent in Charge, Southeast Carribean Region, Department of Housing and Urban Development (HUD), Office of the Inspector General, and Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation, announce that TAVARES CHARLES WILLIAMS has been indicted by a federal grand jury for Social Security fraud, submitting false statements, and theft of government property.

TAVARES WILLIAMS, 29, of Trussville, Alabama, was charged in a seven-count indictment filed today at U.S. District Court in Birmingham.

Counts One through Three of the indictment charge that WILLIAMS, employed as a mortgage company officer, used false social security numbers enabling ineligible home purchasers to qualify for Federal Housing Administration guaranteed loans. Counts Four through Six charge WILLIAMS with making false representations on HUD application documents. Count Seven charges WILLIAMS with theft of government property. The criminal conduct alleged in the indictment occurred from October 1999 until July 27, 2000.

Update on Thursday, October 20, 2005 at 09:41AM by The Editor - Ian Shuter

On October 14th Williams was sentenced to twelve months in prison, and was given a three year supervised release term after the prison term is served. He had previously been convicted on three charges.

US DOJ Press Release