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MORTGAGE e-ALERT© (08-10-01a)
NEW “RED FLAG” RULES MANDATORY AND REQUIRED BY FTC, NCUA, FACT ACT OF 2003-THE MANUAL MUST BE IN PLACE BY NOVEMBER 1, 2008 FACTS New ‘Red Flag’ Requirements for Financial Institutions and Creditors Will Help Fight Identity Theft Identity thieves use people’s personally identifying information to open new accounts and misuse existing accounts, creating havoc for consumers and businesses. Financial institutions and creditors soon will be required to implement a program to account, detect, prevent, and mitigate instances of identity theft. The Federal Trade Commission (FTC), the federal bank regulatory agencies, and the National Credit Union Administration (NCUA) have issued regulations (the Red Flags Rules) requiring financial institutions and creditors to develop and implement written identity theft prevention programs, as part of the Fair and Accurate Credit Transactions (FACT) Act of 2003. The programs must be in place by November 1, 2008, and must provide for the identification, detection, and response to patterns, Practices, or specific activities – known as “red flags” – that could indicate identity theft. Who must comply with the Red Flags Rules? The Red Flags Rules apply to “financial institutions” and “creditors” with “covered accounts.” Under the Rules, a financial institution is defined as a state or national bank, a state or federal savings and loan association, a mutual savings bank, a state or federal credit union, or any other entity that holds a “transaction account” belonging to a consumer. Most of these institutions are regulated by the Federal bank regulatory agencies and the NCUA. Financial institutions under the FTC’s jurisdiction include state-chartered credit unions and certain other entities that hold consumer transaction accounts. (This would include escrow accounts and advance fee or other trust accounts such as purchase money in buy-sell situations) A transaction account is a deposit or other account from which the owner makes payments or transfers. Transaction accounts include checking accounts, negotiable order of withdrawal accounts, savings deposits subject to automatic transfers, and share draft accounts. A creditor is any entity that regularly extends, renews, or continues credit; any entity that regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who is involved in the decision to extend, renew, or continue credit. Accepting credit cards as a form of payment does not in and of itself make an entity a creditor. Creditors include finance companies, automobile dealers, mortgage brokers, utility companies, and telecommunications companies. Where non-profit and government entities defer payment for goods or services, they, too, are to be considered creditors. Most creditors, except for those regulated by the Federal bank regulatory agencies and the NCUA, come under the jurisdiction of the FTC. A covered account is an account used mostly for personal, family, or household purposes, and that involves multiple payments or transactions. Covered accounts include credit card accounts, mortgage loans, automobile loans, margin accounts, cell phone accounts, utility accounts, checking accounts, and savings accounts. A covered account is also an account for which there is a foreseeable risk of identity theft – for example, small business or sole proprietorship accounts. Complying with the Red Flags Rules Under the Red Flags Rules, financial institutions and creditors MUST DEVELOP A WRITTEN PROGRAM that identifies and detects the relevant warning signs – or “red flags” – of identity theft. These may include, for example, unusual account activity, fraud alerts on a consumer report, or attempted use of suspicious account application documents. The program must also describe appropriate responses that would prevent and mitigate the crime and detail a plan to update the program. The program must be managed by the Board of Directors or senior employees of the financial institution or creditor, include appropriate staff training, and provide for oversight of any service providers. How flexible are the Red Flags Rules? The Red Flags Rules provide all financial institutions and creditors the opportunity to design and implement a program that is appropriate to their size and complexity, as well as the nature of their operations. There are about 26 red flags. They fall into five categories: alerts, notifications, or warnings from a consumer reporting agency; suspicious documents; suspicious personally identifying information, such as a suspicious address; unusual use of – or suspicious activity relating to – a covered account; and notices from customers, victims of identity theft, law enforcement authorities, or other businesses about possible identity theft in connection with covered accounts.
Have a Red Flag identity theft manual in place or if a borrower’s identity is stolen, guess who will be paying for the loss? We have one almost ready. It will be ready by November 1, 2008. Cost to CAMB members is $250. To nonmembers it is $500. Contact Loretta at 714-662-4990 if you would like to order on.
ARIZONA ATTORNEY GENERAL REACHES SETTLEMENT WITH HARVEST PROPERTIES OVER FORECLOSURE RESCUE SCAM FACTS Arizona's attorney general has reached a settlement with Harvest Properties of Tucson over a consumer lawsuit that alleges the company and its owners committed foreclosure-rescue fraud and mortgage fraud. The consent, which doesn't include admission of wrongdoing by the company, requires Harvest's owners and manager to pay $350,000 in restitutions to about 100 people. Arizona Attorney General Terry Goddard said. Harvest's owners and managers include Colin Sterling Reilly, Robert Harrington Reilly and Jill Lynae Reilly. The suit alleged that Harvest worked a scheme that used deceptive practices to buy foreclosed homes at discounted prices. (AZREP92608) MORAL Remember it is a witch hunt out there and you are the witch. Read the rules and regulations and the laws and comply. If you do not understand, ask your attorney. That is a lot cheaper than paying the attorney to defend after the fact. ONLY NINE REAL ESTATE BROKERS HAVE ADVANCE FEE AGREEMENTS APPROVED BY THE CALIFORNIA DEPARTMENT OF REAL ESTATE FACTS Following are the ONLY brokers that have Advance Fee Agreements approved by DRE to date. The following individual and corporate real estate brokers have submitted Advance Fee Agreements for Loan Modification and/or similar services to the Department of Real Estate for review and have received "no objection" letters regarding their use.
MORAL If someone says they are approved, then they are on this list. If not I would question them carefully. As I have explained if you want us to seek approval for you the cost is a flat fee of $5,000. A REMINDER THAT CALIFORNIA REGULATORY AGENCIES SUCH AS CFL AND RMLA CHECK INTEREST ON PROMISSORY NOTES SECURED BY DEEDS OF TRUST TO SEE THAT NO BORROWER IS CHARGED MORE THAN ONE DAY’ S INTEREST BEFORE ESCROW CLOSES FACTS (a) A borrower shall not be required to pay interest on a principal obligation under a promissory note secured by a mortgage or deed of trust on real property improved with between one to four residential dwelling units for any period that meets any of the following requirements: (1) Is more than one day prior to the date that the loan proceeds are disbursed from escrow. (2) In the event of no escrow, if a request for recording is made in connection with the disbursement, is more than one day prior to the date the loan proceeds are disbursed to the borrower, to a third party on behalf of the borrower, or to the lender to satisfy an existing obligation of the borrower. (3) In all other circumstances where there is no escrow and no request for recording, is prior to the date funds are disbursed to the borrower, to a third party on behalf of the borrower, or to the lender to satisfy an existing obligation of the borrower. (b) Interest may commence to accrue on the business day immediately preceding the day of Disbursement, for obligations described in paragraphs (1) and (2) of subdivision (a) if both of the (1) The borrower affirmatively requests, and the lender agrees, that the disbursement will occur on Monday, or a day immediately following a bank holiday. (2) The following information is disclosed to the borrower in writing: (A) the amount of additional per diem interest charged to facilitate disbursement on Monday or the day following a holiday, as the case may be, and (B) that it may be possible to avoid the additional per diem interest charge by disbursing the loan proceeds on a day immediately following a business day. This disclosure shall be provided to the borrower and acknowledged by the borrower by signing a copy of the disclosure document prior to placing funds in escrow. (c) This section does not apply to a loan that is subject to subdivision (c) of Section 10242 of the Business and Professions Code. (Civil Code §2948.5} MORAL I wonder if the DRE hard money lenders are being audited for the borrower overpayment of interest. Be totally aware that the auditors for CFL and RMLA check for overcharging of interest on every audit and will make you pay it back. GUARANTEED TO GET YOU A CALIFORNIA DEPARTMENT OF REAL ESTATE AUDIT FACTS Advertise for loan modifications and not be one of the nine licensees that have an approved advance fee agreement. MORAL Which is cheaper? Pay us to obtain an approved fee agreement or get audited by DRE? CHARLES ELLIOTT FITZGERALD OF BEVERLY HILLS, CALIFORNIA GETS FOURTEEN YEARS IN FEDERAL PRISON FOR MORTGAGE FRAUD FACTS Charles Elliott Fitzgerald, an admitted architect of one of the largest real estate frauds in California history, was sentenced October 2, 2008 to 14 years in federal prison for his part in bilking mortgage lenders of more than $40 million. Fitzgerald, 48, pleaded guilty in May to conspiracy, fraud and other charges, acknowledging that he reaped at least $5 million from the scheme, which was based in Beverly Hills and involved high-end house flips. He is the first of 11 defendants to be sentenced in the case. Prosecutors said Fitzgerald and his alleged co-conspirators, including developer Mark Alan Abrams and star real estate agents Joseph Babajian and Kyle Grasso, hatched their scheme during California's burgeoning real estate boom of the late 1990s and early 2000s. They allegedly bought inexpensive houses in exclusive areas at market value, fabricated records showing them to be worth two or three times as much, and then secured $142 million in loans based on the inflated numbers. The alleged fraud ring initially kept up payments on the properties, but by August 2003 the mortgages were slipping into default and headed for foreclosure. Money that might have been used to service the loans instead was spent by Abrams and Fitzgerald on lavish items such as private jets and vintage wines, court records in the lenders' civil lawsuits show. Lehman Bros. Bank, which last month spiraled into bankruptcy amid the nation's deepening financial crisis, and another lender, RBC Mortgage Co., lost about $42 million on the loans, according to prosecutors and the civil suits.
Babajian, 55, Grasso, 37, and another defendant, appraiser Lila Rizk, 41, has pleaded not guilty and are awaiting trials that have yet to be scheduled. Abrams, 47, and six other defendants have pleaded guilty and will be sentenced after the remaining criminal cases play out.
Fitzgerald had asked to be sentenced now because he wanted to be moved from Los
Angeles, where he has been held since December 2006, to a prison closer to his
family, who live in Idaho and Utah.
Prosecutors say the pair recruited real estate agents, including Grasso and
Babajian -- whose celebrity clients have included Ryan Seacrest and Oscar De La
Hoya -- to find properties, negotiate sales, falsify listings and jack up the
"comps," or comparable sales figures, from other transactions in the area. In all, they bought about 80 houses in exclusive enclaves of Southern and Northern California, often using people posing as buyers who appeared to be legitimate but were not, the government contends. The "buyers" owned the homes in name only -- Fitzgerald and Abrams allegedly kept control of the properties and rented some to raise cash to help keep their scheme going.
Some straw buyers' identities were used without their knowledge. A dozen others
told a private investigator working for Lehman Bros. that they were solicited by
Fitzgerald or others to sell the use of their names and credit histories for up
to $15,000 but didn't know they had done anything wrong, court records show.
As the fraud unraveled, Fitzgerald fled the
country with his wife and children in 2003. He left behind a second woman he
married in Las Vegas in 1999, and their young son, court records state. MORAL Let me see. He is sorrow for all the victims. He wishes he could undo it but he can’t. Yet he FLED the United States presumptively to avoid arrest and left behind a second wife without divorcing one of them. It seems that is bigamy. Somehow, I do not believe the sorry part other than he is sorry he got caught. What about the harm to the child of the second marriage? CONNECTICUT MAN SENTENCED FOR MORTGAGE FRAUD FACTS MATTHEW S. LISTRO, 38, of South Windsor, Connecticut, was sentenced on October 1, 2008 in Bridgeport to two years of probation for his involvement in a mortgage fraud scheme. Judge Underhill also ordered LISTRO to pay a fine in the amount of $10,000. On October 18, 2007, LISTRO pleaded guilty to one count of wire fraud. In April 2003, LISTRO, doing business as Prestige Mortgage of East Hartford, prepared a Uniform Residential Loan Application (URLA) in connection with a purported purchase of real estate between two individuals. LISTRO prepared the URLA on behalf of one of the individuals and submitted the URLA to Chase Manhattan Mortgage Corporation in an attempt to qualify that individual for a loan in the amount of $322,700 allegedly to purchase property in Coventry, Connecticut However, the financial information and documents that LISTRO provided to Chase were false and fraudulent. Specifically, LISTRO represented to Chase that the individual was a regional manager of a jewelry retailer when she was not, that she earned a substantially greater salary than she actually earned, and that she owned substantially more assets than she actually owned. In addition, LISTRO provided to Chase documents to support the URLA, including a statement of an investment account, an IRS form W-2, and an earnings statement, all of which he knew were materially false and fraudulent. LISTRO has admitted that he submitted false documents to Chase in order to increase the likelihood the individual would qualify for the loan, and to benefit financially by brokering the loan. (usattyconn10108) MORAL One loan. Not funded. No loss. Felony Conviction. No vote. No ability to get licenses for business. Just does not seem worth it, does it? FLORIDA ATTORNEY GENERAL SUES TEN MORTGAGE COMPANIES AND FIFTEEN INDIVIDUALS FACTS Florida Attorney General Bill McCollum says his office has sued 10 companies and 15 individuals for their alleged roles in a significant mortgage fraud scheme in central Florida. The ring obtained more than $37 million in mortgage loans for at least 60 home purchases and siphoned off more than $6 million of those loan proceeds for their own use. Beginning in July 2005 and continuing through at least January 2007, three of the ring's leaders allegedly defrauded banks by recruiting straw buyers with good credit and using these straw buyers to create false loan applications to purchase homes. They also allegedly created and provided fraudulent supporting documentation for the mortgage loan applications, including false employment information and verifications for the straw buyers. The lawsuit names American Heritage Mortgage Group Inc., Security One Mortgage Corp., Security Trust Title LLC, Trincity Trucking Inc., Allen Boyarsky, Stephen Mahadeo, E. Brooke Co. LLC, Longdenville Investment & Management Inc., American Heritage Commercial Capital, P & R Funding Corp., Steele Property Investments Inc., Bethann Schuldiner, Anthony Didonato, Steve Groden, Brad Frank Groden, 1st Capital Mortgage Associates Inc., Heather Showalter, Jeanette Lugo, Magdalene Williams, Norma Lopez, Kenneth West, Marcus Habeeb, Luis Delgado, Aziz Mohammed and Betty Bedeau. (mortorb92008flaag) MORAL As I have been saying all along. It takes about two years for the lawsuits and/or the indictments to come down. So do not be surprised but do be prepared to see your attorney immediately or a cell a lot sooner. LOUISIANA MORTGAGE BROKER SENTENCED TO 3-YEARS FOR MORTGAGE FRAUD FACTS ANTHONY GRISHBY, former president and managing partner of Infinity Mortgage Services, Inc., age 38, of Clinton, Mississippi, along with his associates, was sentenced the week of September 30, 2008 to spend 36 months in prison, followed by five years of supervised release. GRISHBY pleaded guilty on August 15, 2006 to one count of mail fraud as a result of an elaborate scheme to obtain home loans for unqualified buyers and to falsely inflate commissions for loans brokered by his mortgage company. GRISHBY routinely created false records, to include social security statements, employment statements and W-2 forms, in an effort to inflate the true financial strength of borrowers to insure that their home loan applications would be approved by banks to purchase residential properties. Once completed, the false loan packages were mailed to various financial institutions. The loan applications often portrayed loans as refinances to cause the lending institution to believe that the loan applicants had a successful payment history; when in fact, the borrower was a first time home buyer. GRISHBY substantially increased his fees and commissions by “flipping” many of the homes being purchased by Infinity customers through the creation of cash sale documents and bogus appraisals which were used to create a second paper transfer of the properties. GRISHBY created shell companies that would appear as creditors on the closing documents allowing him to pocket thousands of dollars via the use of phony creditors despite the fact that the purchasers had no previous dealings with him or the companies being portrayed as creditors at the closing of the loan transaction. GRISHBY processed in excess of $4 million in home mortgages, and approximately $1.4 million in criminal proceeds was fraudulently funneled through his companies. The remaining defendants and their sentence are as follows: HOWARD McZEAL, Appraiser, age 52, of Lafayette, Louisiana, was sentenced to five years probation and a $10,000.00 fine. ERIN BROUSSARD, Secretary, age 30, of Lafayette, Louisiana, was sentenced to one year probation. LORI MOREAU, Intake Clerk, age 32, of Scott, Louisiana, was sentenced to one year probation. SHAWN HOLLIER, Intake Clerk, age 29, of Leonville, Louisiana, was sentenced to one year probation. (usattywdla93008) MORAL Even with the probation, they lose the right to vote, the right to hold public office, the right to get certain types of licenses, and if they are green card and not citizens they do get the right to be DEPORTED, never to return. Do you really want that? Get your citizenship now. Anything can happen even by mistake but once you are a citizen you are not permanently banned from the United States. MARNY ARLEN BAILEY OF HIGHLAND, MARYLAND PLEADS GUILTY TO MORTGAGE FRAUD FACTS Marny Arlen Bailey, age 35, of Highland, Maryland, pleaded guilty on September 29, 2008 to wire fraud in connection with a scheme to steal real estate settlement funds which were intended to pay off the homeowners’ previous loans. Marny A. Bailey was the head of Executive Settlements, dba Superior Settlements (Executive), a company which handled residential real estate closings. Whenever a piece of real property that was subject to a lien or mortgage was sold or refinanced, it was the obligation of Executive and Bailey, as its principal and owner, to see that the original mortgage lender was paid out of the proceeds of the transaction. Beginning in late 2007 or early 2008, Bailey began taking funds which were intended to pay off mortgage lenders at closing and using the money for her own purposes. In early 2008, she diverted whole settlement amounts to her accounts, and started gambling in an attempt to make back the amounts she had stolen. When the bank where Bailey had her escrow account advised her to take her business elsewhere, Bailey transferred the balance in her escrow account, over $184,000, to an operating account, and spent it. In February and March of 2008, she stole settlement monies from as many as four homeowners, for a total of just under $1 million. Bailey was arrested by the FBI on May 23, 2008 in Atlantic City, New Jersey, where she was living in casinos and gambling. Bailey faces a maximum penalty of 30 years in prison and $1 million fine for wire fraud. U.S. District Judge J. Frederick Motz has scheduled sentencing for December 8, 2008 at 9:00 a.m. (usattymd92908) MORAL First you take it. Then you gamble it to see if you can win it back. I do not know about you but unless you are a professional gambler that is chasing good money after bad that could be used to reduce the shortage. THREE ST. LOUIS, MISSOURI PEOPLE, FATHER, SON AND MORTGAGE BROKER INDICTED FOR MORTGAGE FRAUD FACTS William E. McKanry; his son, William C. McKanry and mortgage broker Paula Enders have been indicted on bank, wire and mail fraud charges involving the multi-million dollar sale of twelve local properties. William C. McKanry owned, operated and managed USA Title, LLC; William C. McKanry and his father, William E. McKanry, owned, operated and managed USA Properties, LLC; and Paula Enders was a licensed mortgage broker. She operated under the mortgage brokerage company known as Foundation Mortgage, Inc. Between December 2005 and January 31, 2006, the McKanrys’ sold twelve real estate properties through Enders. The total sale price of the properties was approximately $2.7 million. According to the indictment, Enders would shop on-line to obtain mortgage financing for all of the twelve properties. On the loan applications for these properties, Enders falsified that the source of the down payments, settlement charges and subordinate finances were to be made by the buyer of these properties, when they were actually made by William E. and William C. McKanry, the sellers of the properties. All closings were made at USA Title, LLC, St. Louis County, and documents falsely showed the buyer as making cash payments that were actually made by the McKanrys. The indictment states that at the closings, Enders received $226,000 above her commission fees as the mortgage broker to buy Foundation Mortgage, Inc. On the seller’s settlement statement these monies were falsely represented to be construction rehab costs on the particular properties. Money would be going to Paula Enders at the closings as construction rehab on these properties when they actually were to be used to purchase Foundation Mortgage, Inc. 11 out of 12 properties ended up in foreclosure and were resold for $1.2 million for a loss of approximately $1.5 million. USA Properties, LLC maintained and provided a list of their "for sale" properties to area brokers and real estate agents. The list identified the particular property address and corresponding "retail value" and "sale price." In order to sell the properties, USA Properties, LLC was willing to sell these properties below the purported appraised value to buyers. This market of favorably priced real estate to which Paula Enders, William C. McKanry and William E. McKanry had access provided an opportunity. By matching USA Properties, LLC with buyers, they exploited the difference between what USA Properties, LLC was willing to take for a property "sale price" and what a prospective investor, induced by special deals, was willing to pay, i.e., the "spread" or "retail value." If convicted, conspiracy to commit bank fraud carries a maximum penalty of five years in prison and/or fines up to $250,000; each count of mail and wire fraud carries a maximum penalty of twenty years in prison and/or fines up to $1,000,000. Restitution is mandatory. (stlouisedemousatty10208) MORAL Note what I have been telling you all along. The loans complete about two years before the indictments due to the time it takes to issue, serve and review the results of grand jury subpoenas. There are ways to mitigate the problems legally if you seek your legal counsel now. Later after you become a target it is too late. NEVADA NEW FORMS FOR LICENSE RENEWAL AS OF SEPTEMBER 2008 FACTS Application for Renewal of Mortgage Banker License (Principal Locations), revised 9/08 Application for Renewal of Mortgage Banker License, revised 9/08 Application for Renewal of Mortgage Agent License, revised 9/08 MORAL Use the new forms or get rejected for license renewal. Then, if license is suspended and you are doing a licensed activity, you get disciplined again. OKLAHOMA MAN GETS 13 YEARS IN FEDERAL PRISON FOR MORTGAGE FRAUD FACTS TERRY HUGH MAHON, 69, of Broken Arrow, Oklahoma, has been sentenced to thirteen years in federal prison in connection with a fraudulent investment scheme involving rebate coupons and home mortgages. A jury found Mr. Mahon guilty on charges of conspiracy, mail fraud, and money laundering. Mr. Mahon has been incarcerated since the jury’s verdict in March. A co-defendant, Grover Harold Phillips of Stillwater, Oklahoma, pled guilty to conspiracy and money laundering on March 21, shortly before trial. His sentencing is pending. They falsely promised buyers and homeowners that if they took out a new mortgage or refinanced their existing mortgage they could pay it off in just five years with one catch – they had to buy a bogus ‘cashback rebate coupon, stated United States Attorney John C. Richter. “This coupon promised financial freedom but delivered financial misery.” Starting in 2000, Mr. Mahon operated a Nevada corporation called Rebates International, Inc.; the offices of Rebates International were in Hollister, Missouri. Mr. Phillips worked in tandem with Mr. Mahon through a Nevada business trust called Amsterdam Fidelity Business Trust; Amsterdam’s offices were at Mr. Phillips’s home in Stillwater, Oklahoma. The evidence at trial showed that from 2000 to 2003, Mr. Phillips and Mr. Mahon worked with other people; including Emzie Huletty of Oklahoma City, to sell “cashback rebate coupons” that would supposedly allow purchasers to pay off their home mortgages in five years. Mr. Mahon and the other conspirators made false representations that if victims paid 17% of the value of their homes to conspirators, they would receive rebate coupons worth the entire value of their homes. The money that they paid was to be invested in “high-yield” trading programs. At the end of five years, the victims could supposedly redeem these rebate coupons for face value and pay off their mortgages. Many victims re-financed their homes to generate the 17% required to participate in the program. After deliberating just over an hour, the jury convicted Mr. Mahon on all four counts in which he was charged. These included conspiracy to commit mail fraud, using a commercial interstate carrier to commit fraud, engaging in a financial transaction over $10,000 in criminally derived proceeds, and engaging in a financial transaction designed to conceal the nature of the funds involved. On September 26, 2008 day Mr. Mahon was sentenced to thirteen years in prison for his crimes. He was also ordered to pay $3,079,684.95 in restitution to hundreds of victims and is subject to a forfeiture order in the amount of $1,061,294.85. Emzie Huletty, who operated EASE Corporation, Vision Services, Inc., and Sunset Financial Group, all located in Oklahoma City, pled guilty to mortgage fraud on March 24, 2006, and was sentenced to two years in prison. (usattywdokla92608) MORAL A little more innovative than usual but the innovation nailed him 13 years in a federal prison. MARTY FOLWICK INDICTED IN JUNE 2008 OREGON PLEADS GUILTY IN OCTOBER 2008 FACTS Marty Ray Folwick, 50, pled guilty on October 2, 2008. We reported his indictment in the June issues of the Mortgage e Alert. The guilty plea was entered as part of a plea agreement in which Folwick pled guilty to one count of bank fraud, two counts of wire fraud, and one count of money laundering. Folwick also agreed to submit to a polygraph test to determine the extent of his assets to satisfy the property forfeiture provisions of the plea agreement and the indictment. Sentencing in this matter is scheduled for December 8, 2008 at 10:30 a.m. The charges to which Folwick pled guilty relate to a single property in Woodburn, Oregon, which was purchased for $390,000. The indictment alleges that Folwick, a real estate loan officer, found buyers for the property and then falsified their loan application by overstating their monthly income, failing to disclose that the buyers had an outstanding mortgage on another property, and failing to disclose that Folwick was receiving a $25,000 kickback from the transaction. At the plea hearing, prosecutors alleged that Folwick had engaged in similar illegal conduct with respect to almost seventy properties. The charges to which Folwick pled guilty could result in a sentence of up to 30 years in prison. However, as part of the plea agreement, the parties have agreed to a joint recommendation of a sentence of 63 months in prison. The court is also free to order restitution to the victim banks. (usattyportlandor10208) MORAL He could have done thirty years but now he AGREED to five years and three months and paying back all losses to the banks by forfeiting property. This can be done by the forfeiture codes similar to drug forfeitures. . THE INFORMATION HEREIN IS NOT LEGAL ADVICE. AN ATTORNEY SHOULD BE CONSULTED IF YOU DESIRE LEGAL ADVICE.
NOTE CERTAIN OPTIONS AVAILABLE TO YOU IN THE EVENT OF FINANCIAL OR MARITAL PROBLEMS
1. Because of the current market we know there are financial problems. Bankruptcy is not always the best way out. If you have serious financial problems we may be able to help you without filing bankruptcy. The initial telephone consultation is with Mr. Thordsen by dialing his direct line of 714-662-4993. He will speak with you on the telephone and discuss possible options including bankruptcy. Be certain to have all your financial records available to better discuss the issues. Then you can decide whether it is better to file bankruptcy or not. Depending on your decision the legal costs involved will be discussed at the same time. 2. There are also marital problems that can appear due to the stress for any number of reasons. If this occurs options can be discussed from mediation to try and keep the marriage together, to separation and dissolution as necessary. Again, have assets and liabilities available to discuss with Mr. Thordsen and he will speak to you over the phone in a consultation without cost. Depending on the outcome of the discussion the costs of going forward can be discussed and there is no obligation to retain our firm in either event. 3. Some of you may have a family member or friend that has been seriously injured in a vehicle collision or suffered other injuries caused by other factors. We can talk to you or the injured party at no charge. If the injured person cannot appear at the office we can come to him at no cost. He only need request we visit him while he is recovering at home or while in the hospital. Let us know and we will send one of our attorneys to discuss the matter with him at no cost and with no obligation at all. If he or she decides to retain us and we agree to accept the case it is strictly on a contingency basis. We will only be paid if there is a settlement or a verdict of a judge or jury that is collectable from the defending party should we prevail in the action and there is no appeal.
For those of you that know us, we still wish you a lot of success and as you know the market will turn around. However, if we can assist you in these other areas are attorneys will be glad to assist you.
Sincerely, Herman Thordsen
SPEAKERS AND SPEAKING ENGAGEMENT Contact Loretta at 888-667-8529 for cost and registration information
IF YOU HAVE PROBLEMS IN ANY AREA OF LAW, PLEASE GIVE US A CALL OUR ATTORNEYS WILL SEE WHAT CAN BE DONE
Please contact Herman Thordsen toll free (888) 667- 8529.
Our firm has been practicing law for over 35 years, the last 19 of which are at the exact same location in Hutton Centre, Santa Ana California. The firm attorneys represent numerous mortgage brokers and lenders, in California Nevada and nationally. We are the attorneys for trade associations including Central Coast Chapter-(CAMB), Central Valley Chapter-(CAMB), East Bay Chapter-(CAMB), Inland Empire Chapter-(CAMB), Monterey Bay Chapter-(CAMB), North Bay Chapter-(CAMB), North San Diego Chapter-CAMB), San Diego Chapter-(CAMB), San Francisco Peninsula Chapter-(CAMB). Silicon Valley Chapter-(CAMB), South Los Angeles Chapter-(CAMB). Mr. Thordsen is a member of the Advisory Board of the Mortgage Banking and Real Estate Appraisal Programs at California State University, Fullerton. In the past, the firm has represented the Nevada Association of Mortgage Brokers. Mr. Thordsen has been a member of the California Department of Real Estate Solicitation Task Force Committee, the California Department of Motor Vehicles Anti-Fraud Task Force. Herman Thordsen is a syndicated columnist for Broker Universe, a division of Thomson Media as well as publishing monthly columns for the San Diego Chapter-CAMB. He is also a responding attorney for RESPANEWS.com. Mr. Thordsen conducts seminars on Federal and State mortgage loan audit compliance issues that cover the new “RED FLAG”-IDENTITY THEFT MANUAL effective November 1, 2008, HUD, RESPA, TILA, PREDATORY LENDING, NEVADA and CALIFORNIA. He authors numerous manuals and articles on HUD Audits, California Department of Real Estate Audits, Nevada Mortgage Lending Division Audits, Truth in Lending, RESPA, Mortgage Fraud and Predatory Lending. Mr. Thordsen is an invited guest speaker before trade groups, and is a guest speaker on Mortgage Radio: “Legal Sand Traps” to discuss RESPA, minimum wage and overtime issues as well as legal requirements for protecting the consumer/borrower financial information. He has been a speaker on HUD audits before the Clark County Bar Association, Las Vegas Nevada and the Nevada Association of Mortgage Brokers Education Committee as well as a guest speaker on mortgage fraud. He has been a guest speaker at the National Compliance Summit held in Las Vegas, Nevada updating the attendees on “Third Party Mark-ups” and the status of employment laws and regulations against brokers, lenders and title companies that misclassify loan officers and others as independent contractors to avoid paying minimum wage and overtime. He has also been a guest speaker on the RESPA issues at the National RESPA Compliance Summit in Las Vegas, Nevada. The Firm regularly represents brokers, licensees and lenders before licensing agencies such as the California Department of Real Estate, California Finance Lender section of the Department of Corporations, HUD-FHA Mortgagee Review Board (MRB), HUD Home Ownership Centers, California Office of Administrative Hearings, and the Nevada Mortgage Lending Division. This representation includes those charged with violation of federal and state mortgage laws or the withdrawal of FHA/HUD approval and the threat of paying civil penalties or loan indemnification agreements to HUD. Mr. Thordsen acts as an advisor on other state licensing audit violations including but not limited to Arizona, Florida, New York, North Carolina, Oregon, Texas, Virginia, Washington, as well as the Philippines to name a few. Our attorneys are able to represent you in lender buyback demands, civil and/or criminal Mortgage Fraud and other white-collar crimes such as wire fraud and mail fraud in both State and Federal Courts. We additionally represent our clients in personal injury cases, wage disputes before various labor boards including minimum wage, overtime and unemployment compensation issues. The firm has highly experience personal injury attorneys available to assist clients in the recovery of damages for serious injuries caused by others... If we may be of service in these areas or estate planning and asset protection, please contact us, and one of our attorneys will discuss the matter with you.
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Locations
Santa Ana, California San Jose, California 6 Hutton Centre Drive 556 N. First Street Suite 1040 Suite 100 Santa Ana, CA 92707 San Jose, CA 95112 (714) 662-4990 (888) 667-8529
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