An indictment returned on January 24, 2013, in the Northern District of Illinois charges attorney Warren Ballentine with bank, mail and wire fraud. The indictment appears to be connected to several recent indictment/convictions and plea agreements. It names co-schemers Bobbie Brown, who previously received a 20-year sentence for a mail fraud scheme on the south… Continue Reading
Category Archives: Mortgage Fraud
Subscribe to Mortgage Fraud RSS FeedDOJ Brags About Record False Claims Act Recoveries
Posted in False Claims Act, Healthcare Fraud, Mortgage Fraud, U.S. Attorney's OfficeThe U.S. Department of Justice (DOJ) has released its annual bragging report about its recoveries under the False Claims Act (FCA). For the fiscal year ending September 30, 2012, DOJ reports that it recovered nearly $5 billion, and asserts that the $13.3 billion recovered since January 2009 is the highest amount in any four-year period… Continue Reading
Results of the Distressed Homeowner Initiative
Posted in Mortgage Fraud, U.S. Attorney's OfficeThe FBI and the U.S. Department of Justice announced the results of their year-long “Distressed Homeowner Initiative” (DHI). According to the press release, the DHI was launched by the FBI in October 2011. The DHI combined the resources of federal, state and local law enforcement agencies and the efforts of regulatory agencies to target perpetrators… Continue Reading
Seventh Circuit Holds Proceeds, Not Property, Is Proper Offset
Posted in Bank Fraud, Mortgage Fraud, SentencingEarlier this week, the Seventh Circuit addressed an issue over which its sister circuits have split, namely whether, in mortgage fraud cases, the “offset value” to be applied toward any order of restitution should be based on the fair market value of the property on the date the victims obtained title, or whether such offset… Continue Reading
The Seventh Circuit Affirms an Eight-Year Sentence in an Elaborate Indiana Mortgage Fraud Scheme
Posted in Mortgage Fraud, SentencingThe Seventh Circuit Court of Appeals affirmed a Northern District of Indiana Court’s conviction and eight-year sentence of Michael Sheneman. In United States of America v. Michael Sheneman, No. 11-3161, Michael Sheneman and his son executed a scheme in which they sold more than 60 rental homes in South Bend and Mishawaka, Indiana to four… Continue Reading
Mortgage Fraud Schemes Take On New Look But the Song Remains the Same
Posted in Mortgage FraudMortgage fraud prosecutions in the Northern District of Illinois are showing no signs of slowing down, despite being well past the boom that led to the housing market collapse. Interestingly, the same mechanisms and schemes continue to be employed, despite more stringent lending practices and a heightened awareness to such activity. At the beginning of… Continue Reading
Owner of Metro Dream Homes Sentenced to 150 Years in Prison for $78 Million Mortgage Fraud Scheme
Posted in Bank Fraud, Mortgage Fraud, SentencingThe founder of Metro Dream Homes who was convicted in a $78 million mortgage fraud plot, was sentenced to 150 years in prison on March 30 2012. Andrew Hamilton Williams, Jr. was convicted in November of: (1) conspiracy to commit wire fraud, (2) wire fraud and (3) conspiracy to commit money laundering. According to the… Continue Reading
Sophisticated Means Enhancement Based on General Sophistication of Scheme Upheld
Posted in Mortgage FraudIn a recent Seventh Circuit appeal, a defendant appealed his conviction. In particular, he challenged the application of a two-level sophisticated means enhancement in calculating his guideline sentence. The defendant was convicted of wire fraud and mail fraud arising out of a complex mortgage fraud scheme. As part of the scheme, multiple defendants prepared fraudulent… Continue Reading
7th Circuit: Use of Words "Fraud" and "Misrepresentation" By Materiality Witnesses Okay Where No Objection by Defendant
Posted in Mortgage FraudUnited States v. Donella Locke, Seventh Circuit, No. 10-1351, June 21, 2011, appeal from the United States Disctrict Court for the Southern District of Indiana, No. 1:08-cr-00018. Defendant became a real estate agent in an attempt to rebuild her credit and get out of debt. During the course of her transactions, from January to May… Continue Reading
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