Flipping Frenzy.com is your source for news, information, and commentary on Real Estate and Mortgage Fraud. 
If you believe you have been a victim of real estate or mortgage fraud, start here! Select your state from the pulldown menu below:
Real Estate Appraiser Pleads Guilty in $50 Million Real Estate Investor Fraud
A former licensed Real Estate appraiser and an appraisal coordinator for a real estate investment company have plead guilty for their respective roles in a conspiracy that defrauded hundreds of individual investors of over $50 million and banks of over $2 million.
Thirty-seven year-old William Page 37, of Old Bridge Township, New Jersey, pleaded guilty before a U.S. District Judge earlier this month to a one-count information charging him with conspiracy to commit mail fraud for creating materially false and misleading property appraisals and construction progress letters. The inflated appraisals were used to assure individuals that their investments in NJ Affordable Homes Corp., (NJAH) were secured by investment properties. The false construction progress letters falsely stated that renovations and improvements were made to investment properties and were used to fraudulently disburse investors’ funds from escrow.
Another defendant, John Morris 61, of Fort Lee, New Jersey, pleaded guilty to a one-count information charging him with conspiracy to commit wire fraud in connection with his role in a conspiracy to defraud mortgage lenders of at least $2 million. Morris oversaw the creation of fraudulent property appraisals that were sold by NJAH to straw buyers. Using the fraudulent appraisals, NJAH prepared fraudulent loan applications in the names of nominee buyers and sold the properties at inflated prices. The scheme left mortgage lenders with loans that were grossly under secured, and nominee buyers with outstanding mortgage loans in their names. Page and Morris are the fifth and sixth individuals associated with NJAH who have pleaded guilty in related investment and mortgage fraud schemes.
NJAH first came under scrutiny of the Securities and Exchange Commission, which obtained a restraining order against the company in September of 2005. NJAH subsequently was ordered into receivership and then bankruptcy by a federal judge. In March of this year, Michael Meehan, 47, of Belmar, NJ, pleaded guilty to his role in the conspiracy to defraud various lending institutions. In January, co-conspirator Katrina Arrington, 34, of Hillside, NJ, pleaded guilty to her role in the conspiracy, while co-conspirators John Kurzel, 55, of New Brunswick, NJ, and Lucesita Santiago, 37, of Woodbridge, NJ, both pleaded guilty to the same conspiracy charge for their participation in the mortgage fraud scheme in October of 2006.
At his plea hearing, William Page admitted that from 1998 through September 2005, he knowingly created materially false and misleading property appraisals that fraudulently inflated the value of properties that NJAH used to secure investor funds. The appraisals were used by NJAH to persuade individuals to make and retain over $100 million of investments made with the company. Page also admitted that he created materially false and misleading construction progress letters that were used to release investors’ money from an attorney escrow account.
At his plea hearing, John Morris admitted that from about March 2003 through September 2005, as NJAH’s appraisal coordinator, he participated in a conspiracy to defraud various mortgage lenders by submitting materially false and misleading property appraisals and altered photos of properties. The appraisals overstated the value of the properties and falsely claimed that the properties had substantial improvements such as new windows, bathrooms, electric wiring, plumbing and siding.
Remarkably, both Page and Morris are free on $25,000 unsecured bonds (both are scheduled to be sentenced on Monday, December 10, 2007). The charges to which Page and Morris pleaded guilty carry a statutory maximum penalty of five years in federal prison and a fine of $250,000.
A Ralph Roberts Site, Copyright 2005-2008 |
the same thing has happened here in stockton, california. i was a victim of realestate fraud, to my amazement this woman and her scam with tons of people involved along with her, has been doing this type of crime for years.
how do i get her convicted so as to not to do this again to another person. she has bilked tons of unknowing innocent people of their savings and spared noone’s expense.
thanks any advice would greatly be appreciated……
Comment by name withheld — December 13, 2009 @ 12:14 pm
Get as much information and people and contact the F.B.I.
Comment by Bob — December 14, 2009 @ 1:14 am