Bobbie L. Brown, Jr., 47, Country Club Hills, Illinois, was sentenced to 20 years in federal prison in one of the largest federal mortgage fraud prosecutions ever in Chicago, Illinois.
Brown pled guilty in 2010 to charges in two separate indictments, each alleging of mail, wire and bank fraud. U.S. District Judge Virginia M. Kendall imposed the 20 year prison term and ordered Brown to pay restitution in excess of $32 million and to forfeit in excess of $24 million at a hearing in Federal Court.
According to first indictment, Brown, who operated several businesses, including Chicago Global Investments, Inc., B&M Customs Homes, Inc., Brown Trucking, Inc., and World Wide Investments, Inc., and 20 co-defendants were charged with fraudulently obtaining more than $95 million in loan proceeds from lenders for themselves and others. The victim lenders incurred losses totally approximately $24 million on the defaulted loans. The residences that were the subject of the alleged fraud scheme were located in various Chicago, Illinois suburbs, including Country Club Hills, Flossmoor, Frankfort, Mokena, Woodridge, Elmhurst, Lemont, Orland Park, Addison, Homewood, Naperville and Aurora.
The second indictment alleged that between August 2006 and April 2007, Brown and 12 co-defendants fraudulently obtained approximately 32 home mortgage loans - in this case on homes in Nevada and California, from which they obtained more than $16 million in loan proceeds. The victim lenders incurred losses totaling approximately $7 million on the defaulted loans.
In the Chicago scheme, 14 of the 21 defendants have been sentenced and the sentences ranged from probation to 66 months custody in the Bureau of Prisons. The remaining seven defendants are scheduled for trial in June, 2011. Ten of the 13 defendants have been sentenced in the Nevada scheme, with sentences ranging from 6 - 45 months custody in the Bureau of Prisons. The remaining three defendants in that case have pled guilty and are scheduled to be sentenced at a later date.
The sentence was announced by Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Thomas P. Brady, Inspector-in-Charge of the U.S. Postal Inspection Service; and Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The government was represented by Assistant U.S. Attorneys Daniel May and Erica Csicsila.
Saturday, March 26, 2011
Pastor indicted in mortgage fraud
Clint Rogers, 37, Scottsdale, Arizona, and Angela Rogers, 31, Scottsdale, a pastor and his wife, as well as Shannon Kato, 40, Sedona, Arizona; Ernest Babbini, 55, Scottsdale; and Drew Hull, 30, Prescott, Arizona, have been indicted for alleged mortgage fraud crimes. Clint Rogers, Angela Rogers, and Shannon Kato have been arrested, and Ernest Babbini and Drew Hull have been served with a summons to appear in federal court.
The defendants are charged for their involvement in multi-million-dollar mortgage fraud conspiracies. Specifically, the defendants fraudulently obtained millions in loans and "cash back" loan proceeds. The defendants are charged with various counts of conspiracy, conspiracy to commit wire fraud, wire fraud, aggravated identity theft, money laundering, and conspiracy to commit transactional money laundering.
The 13-count indictment alleges that the defendants submitted false loan applications to banks and other lending institutions to buy numerous residential properties in a short period of time, lying about the borrowers' income and liabilities in order to get financing of more than $5.5 million. Most of the homes referenced in the indictment are in Scottsdale, Arizona. The indictment also alleges that the defendants profited from the scheme by artificially increasing the sale prices of the properties and then directing portions of the loan proceeds back to themselves for their own personal use, while concealing this information from the lenders. The indictment alleges over $2.5 million in loan proceeds were directed back to the defendants during a single five-month period.
The defendants are charged for their involvement in multi-million-dollar mortgage fraud conspiracies. Specifically, the defendants fraudulently obtained millions in loans and "cash back" loan proceeds. The defendants are charged with various counts of conspiracy, conspiracy to commit wire fraud, wire fraud, aggravated identity theft, money laundering, and conspiracy to commit transactional money laundering.
The 13-count indictment alleges that the defendants submitted false loan applications to banks and other lending institutions to buy numerous residential properties in a short period of time, lying about the borrowers' income and liabilities in order to get financing of more than $5.5 million. Most of the homes referenced in the indictment are in Scottsdale, Arizona. The indictment also alleges that the defendants profited from the scheme by artificially increasing the sale prices of the properties and then directing portions of the loan proceeds back to themselves for their own personal use, while concealing this information from the lenders. The indictment alleges over $2.5 million in loan proceeds were directed back to the defendants during a single five-month period.
Four charged in Illinois fraud case
Robert Todd McKinney, 42, Belinda Cheri McKinney, 43, John Quinn McKinney, 39, and Chamethele McKinney, 35, were charged in a recently unsealed indictment handed down by a Federal Grand Jury sitting in East St. Louis, Illinois, on February 24, 2011. The alleged violations took place between April, 2000, and December, 2008, in Madison County, Illinois. The arraignment was held on March 11, 2011.
Robert Todd McKinney was indicted for Conspiracy in Count 1, Tax Evasion in Count 2, and Making False Statements in Counts 4, 7, and 8. Belinda Cheri McKinney was charged with Conspiracy in Count 1 and Mortgage Loan Fraud in Count 9. John Quinn McKinney was charged with Conspiracy in Count 1, Tax Evasion in Count 3, and Making False Statements in Counts 5, 6, and 7. Chamethele McKinney was charged with Conspiracy in Count 1, Mortgage Loan Fraud in Count 10, and Making False Statements in Count 11.
According to the court-filed indictment, Robert Todd McKinney and John Quinn McKinney conspired and attempted to evade the payment of taxes by providing false information to IRS revenue officers, ignoring deadlines and notices provided by the Revenue Officers, and lying to Revenue Officers about their ability to pay taxes owed; and concealing assets which would have enabled them to pay the federal taxes assessed and diverting assets that otherwise were available for the payment of taxes.
Chamethele McKinney and Belinda Cheri McKinney joined the conspiracy with their husbands by concealing income, by setting up nominee bank accounts, and by providing false information on mortgage documents.
Trial has been set for May 9, 2011. If convicted of Conspiracy, each defendant faces a term of imprisonment of up to five (5) years, a fine of $250,000, and a term of supervised release of three (3) years. If convicted of Tax Evasion, each defendant faces a term of imprisonment of up to five (5) years, a fine of $100,000 plus the costs of prosecution, and a term of supervised release of three (3) years. If convicted of Making False Statements, each defendant faces a term of imprisonment of up to five (5) years, a fine of $250,000, and a term of supervised release of three (3) years. If convicted of Mortgage Loan Fraud, each defendant faces a term of imprisonment of up to thirty (30) years, a fine of $1,000,000, and a term of supervised release of five (5) years.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Robert Todd McKinney was indicted for Conspiracy in Count 1, Tax Evasion in Count 2, and Making False Statements in Counts 4, 7, and 8. Belinda Cheri McKinney was charged with Conspiracy in Count 1 and Mortgage Loan Fraud in Count 9. John Quinn McKinney was charged with Conspiracy in Count 1, Tax Evasion in Count 3, and Making False Statements in Counts 5, 6, and 7. Chamethele McKinney was charged with Conspiracy in Count 1, Mortgage Loan Fraud in Count 10, and Making False Statements in Count 11.
According to the court-filed indictment, Robert Todd McKinney and John Quinn McKinney conspired and attempted to evade the payment of taxes by providing false information to IRS revenue officers, ignoring deadlines and notices provided by the Revenue Officers, and lying to Revenue Officers about their ability to pay taxes owed; and concealing assets which would have enabled them to pay the federal taxes assessed and diverting assets that otherwise were available for the payment of taxes.
Chamethele McKinney and Belinda Cheri McKinney joined the conspiracy with their husbands by concealing income, by setting up nominee bank accounts, and by providing false information on mortgage documents.
Trial has been set for May 9, 2011. If convicted of Conspiracy, each defendant faces a term of imprisonment of up to five (5) years, a fine of $250,000, and a term of supervised release of three (3) years. If convicted of Tax Evasion, each defendant faces a term of imprisonment of up to five (5) years, a fine of $100,000 plus the costs of prosecution, and a term of supervised release of three (3) years. If convicted of Making False Statements, each defendant faces a term of imprisonment of up to five (5) years, a fine of $250,000, and a term of supervised release of three (3) years. If convicted of Mortgage Loan Fraud, each defendant faces a term of imprisonment of up to thirty (30) years, a fine of $1,000,000, and a term of supervised release of five (5) years.
An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
Tuesday, March 1, 2011
Mihai Chetzan si MOX CONSTRUCTION cu musca pe caciula la Chicago
Afaceristul Chetzan nu are datorii doar la Cluj ci si-n Chicago
Suma $56,992 datorie la compania General Motors ca urmare a unei sentinte judecatoresti din iulie 2009; in noiembrie 2009 s-a dat o citatie pentru ca utilajul/masinile respective daca sunt gasite sa poata fi recuperate/reposedate
- ianuarie 2010 sentinta finala in favoarea Citi Bank pt neplata de catre Chetzan a $24,026.00 pe credit card
- din decembrie 2009 este in proces cu American Express pt neplata a $60,934.02 si alta de $27167.16 la aceeasi companie AE, aceeasi poveste cu Discover Card suma in disputa $6,758.98
-septembrie 2010 sentinta judecatoreasca in favoarea Harris Bank pt neplata sumei de $18,448.00
- pe 5 mai 2010 Fiscul American IRS-ul a pus federal lien adica sechestru pe ceva proprietati pt neplata a $291,764.00
Autoritatile federale l-a pus sub acuzare pe Michel Chezan impreuna cu alt complice Calvin Early pentru frauda, a carei suma se apropie de aproape de jumatate de milion de dolari.
Gasiti documentul cu numele lui la pagina 47.
Pe acelasi topic:
http://filipsinvestigation.blogspot.com/2010/07/stefan-tohatan-investitorul-misionar.html
http://filipsinvestigation.blogspot.com/2010/07/adrian-tarau-si-tepele-imobiliare.html
Thursday, December 9, 2010
85 Years in Prison for Fraud
Mark Alan Shapiro, 50, Avon, Massachusetts, the founder of the Cobalt Companies was sentenced to 85 years in prison on charges stemming from a fraud that raised more than $23 million from over 250 investors in private placement real estate offerings. Shapiro was sentenced in Manhattan, New York, federal court by U.S. District Judge Kimba M. Wood, who presided over the three-week jury trial at which Shapiro, along with co=defendants Irving Stitsky and William B. Foster, was found guilty.
Beginning in late 2003, Shapiro, Stitsky, and Foster founded a group of companies that operated under the name "Cobalt," which purportedly engaged in the acquisition and
development of multi-family real estate properties throughout the United States. Through the Cobalt entities, Shapiro, Stitsky, and Foster fraudulently induced victims to invest by, among other things: (a) misrepresenting Cobalt's operating history; (b) failing to inform prospective investors that Cobalt was owned and controlled by Shapiro and Stitsky, both convicted felons; and (c) misrepresenting and causing others to misrepresent Cobalt's purported ownership interests in certain properties to prospective investors. In fact, Cobalt was a new company with little or no record of real estate investment success, was managed and controlled by Shapiro and Stitsky, and did not own several of the properties that it claimed to own.
In order to carry out their scheme, Shapiro, Stitsky, and Foster established Cobalt's corporate headquarters in Springfield, Massachusetts, a satellite Cobalt office in Miami, Florida, and a telemarketing center in Great Neck, New York. Shapiro controlled and managed all aspects of Cobalt's Massachusetts and Florida offices, while Stitsky was in charge of the telemarketing center in New York. The defendants and their employees solicited funds from investors by making false and misleading oral and written representations about, among other things, the investment for which the investors' funds were solicited, and the identities and relevant background information about the individuals controlling the Cobalt entities.
In addition, in furtherance of the scheme, Shapiro and Foster created and sent false financial statements and fake account statements that purported to show that Shapiro had liquid assets in excess of $3 million.
In addition to the prison term, Judge Wood sentenced Shapiro to three years of supervised release and ordered him to pay $22,075,631 in restitution and to forfeit $23,152,235 in proceeds from his offenses.
Irving Stitsky, 56, Milan, New York, was sentenced to 85 years in prison on July 6, 2010, and William B. Foster, 70, East Hampton, Massachusetts, was sentenced to 3 years in prison on September 22, 2010.
Beginning in late 2003, Shapiro, Stitsky, and Foster founded a group of companies that operated under the name "Cobalt," which purportedly engaged in the acquisition and
development of multi-family real estate properties throughout the United States. Through the Cobalt entities, Shapiro, Stitsky, and Foster fraudulently induced victims to invest by, among other things: (a) misrepresenting Cobalt's operating history; (b) failing to inform prospective investors that Cobalt was owned and controlled by Shapiro and Stitsky, both convicted felons; and (c) misrepresenting and causing others to misrepresent Cobalt's purported ownership interests in certain properties to prospective investors. In fact, Cobalt was a new company with little or no record of real estate investment success, was managed and controlled by Shapiro and Stitsky, and did not own several of the properties that it claimed to own.
In order to carry out their scheme, Shapiro, Stitsky, and Foster established Cobalt's corporate headquarters in Springfield, Massachusetts, a satellite Cobalt office in Miami, Florida, and a telemarketing center in Great Neck, New York. Shapiro controlled and managed all aspects of Cobalt's Massachusetts and Florida offices, while Stitsky was in charge of the telemarketing center in New York. The defendants and their employees solicited funds from investors by making false and misleading oral and written representations about, among other things, the investment for which the investors' funds were solicited, and the identities and relevant background information about the individuals controlling the Cobalt entities.
In addition, in furtherance of the scheme, Shapiro and Foster created and sent false financial statements and fake account statements that purported to show that Shapiro had liquid assets in excess of $3 million.
In addition to the prison term, Judge Wood sentenced Shapiro to three years of supervised release and ordered him to pay $22,075,631 in restitution and to forfeit $23,152,235 in proceeds from his offenses.
Irving Stitsky, 56, Milan, New York, was sentenced to 85 years in prison on July 6, 2010, and William B. Foster, 70, East Hampton, Massachusetts, was sentenced to 3 years in prison on September 22, 2010.
Guaranty Title's owners sentenced in federal court
Richard G. "Rick" Burton, 60, Nixa, Missouri, and Kathy Cyrena Allen, also known as Kathy Stanton, 53, Sarcoxie, Missouri, the owners of Guaranty Title, formerly headquartered in Nixa, Missouri, have been sentenced in federal court for their roles in $4.1 million wire fraud, bank fraud and money laundering conspiracies.
The defendants were sentenced in separate hearings before U.S. District Judge Greg Kays on Tuesday, Nov. 30, 2010. Burton was sentenced to six years and six months in federal prison without parole. Allen was sentenced to three years and three months in federal prison without parole. The court also ordered Burton and Allen to pay $4,150,663 in restitution, for which they are jointly and severally liable.
Burton and Allen participated in a scheme to defraud financial institutions and individuals of more than $4.1 million through a series of illegal financial transfers related to stolen escrow payments. They attempted to conceal their criminal activities through a substantial check-kiting scheme. Both Burton and Allen pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering. Allen also pleaded guilty to conspiracy to commit bank fraud.
Burton was the president and majority owner of Guaranty Title Company of Southwest Missouri, Guaranty Title Company d/b/a Guaranty Title and Closing Company, and Guaranty Properties, Inc. The companies, referred to collectively as Guaranty, provided real estate title and closing services. Allen, who had a 42 percent ownership interest in Guaranty, was the vice president during the time of the conspiracy. Guaranty's main office was located in Nixa, with at least 10 branch offices located in Aurora, Branson, Mount Vernon, Ozark, Springfield and Republic, Mo.
The defendants were sentenced in separate hearings before U.S. District Judge Greg Kays on Tuesday, Nov. 30, 2010. Burton was sentenced to six years and six months in federal prison without parole. Allen was sentenced to three years and three months in federal prison without parole. The court also ordered Burton and Allen to pay $4,150,663 in restitution, for which they are jointly and severally liable.
Burton and Allen participated in a scheme to defraud financial institutions and individuals of more than $4.1 million through a series of illegal financial transfers related to stolen escrow payments. They attempted to conceal their criminal activities through a substantial check-kiting scheme. Both Burton and Allen pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering. Allen also pleaded guilty to conspiracy to commit bank fraud.
Burton was the president and majority owner of Guaranty Title Company of Southwest Missouri, Guaranty Title Company d/b/a Guaranty Title and Closing Company, and Guaranty Properties, Inc. The companies, referred to collectively as Guaranty, provided real estate title and closing services. Allen, who had a 42 percent ownership interest in Guaranty, was the vice president during the time of the conspiracy. Guaranty's main office was located in Nixa, with at least 10 branch offices located in Aurora, Branson, Mount Vernon, Ozark, Springfield and Republic, Mo.
Monique Le Nguyen sentenced
Monique Le Nguyen, aka Monique Dzung Le, 60, Milpitas, California, a licensed real estate agent, was sentenced by United States District Judge Lawrence J. O'Neill to 20 months in federal prison for conspiring to commit mail fraud in connection with the financing and acquisition of five residential properties in Fresno and Mendocino Counties, California, that were later used for the indoor cultivation of large quantities of marijuana. Nguyen was also ordered to pay restitution to the lenders, which suffered actual losses of $678,224.32 as a result of post-sale foreclosures on the Fresno County properties.
Sunday, October 24, 2010
Florida-licensed mortgage lender sentenced to 10 years in prison
Peter James Porcelli, II, 57, Pinellas County, Florida, was sentenced by U.S. District Judge Susan Bucklew to 10 years in federal prison for mail fraud. As part of Porcelli's sentence, the Court entered a money judgment for $1.8 million, an amount equal to proceeds from the fraud. Porcelli had pleaded guilty on April 15, 2010.
According to court documents, Porcelli was a Florida-licensed mortgage lender with his company, Silverstone Lending. Through court lists, Porcelli found people whose homes were falling into foreclosure. Posing as "Peter James," a "Relief Coordinator" for the "nonprofit" Safe Harbour Foundation, Porcelli mailed the homeowners flyers about Safe Harbour. The flyers made it appear that Safe Harbour was there to save the homeowners in their hour of need. When homeowners responded to the flyers, however, "Peter James" referred them to Peter Porcelli at Silverstone Lending, who lent them high-fee, highinterest, short-term balloon payment loans. The fees for Porcelli's loans averaged approximately 60% of the total amount of each loan, and the interest on the loans was as high as 260.18% APR. The loans generally came due in six months.
Many victims lost their homes when they could not repay Porcelli's loans, including one victim who became homeless as a result of the offense.
According to court documents, Porcelli was a Florida-licensed mortgage lender with his company, Silverstone Lending. Through court lists, Porcelli found people whose homes were falling into foreclosure. Posing as "Peter James," a "Relief Coordinator" for the "nonprofit" Safe Harbour Foundation, Porcelli mailed the homeowners flyers about Safe Harbour. The flyers made it appear that Safe Harbour was there to save the homeowners in their hour of need. When homeowners responded to the flyers, however, "Peter James" referred them to Peter Porcelli at Silverstone Lending, who lent them high-fee, highinterest, short-term balloon payment loans. The fees for Porcelli's loans averaged approximately 60% of the total amount of each loan, and the interest on the loans was as high as 260.18% APR. The loans generally came due in six months.
Many victims lost their homes when they could not repay Porcelli's loans, including one victim who became homeless as a result of the offense.
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