Predatory Mortgage Foreclosure Fraud

[Mike]

Targets of the scheme described by Deputy District Attorney Larry Roberts were homeowners desperately trying to save their homes from foreclosure who thought they were obtaining refinancing but wound up selling their houses to straw buyers. In the process the remaining equity in their houses allegedly was stolen through inflated commissions, escrow charges and other fees. Be very careful of anyone promising an easy foreclosure fix by refinancing or "temporarily" transferring ownership of your property. You may not get it back. Full article. 10 San Bernardino County residents accused of predatory mortgage fraud 09:14 PM PDT on Wednesday, May 7, 2008 By LESLIE BERKMAN The Press-Enterprise Ten San Bernardino County residents face criminal charges of participating in a predatory lending scheme based in Rancho Cucamonga that generated more than $2 million in fraudulent mortgages. A lawsuit filed this week in San Bernardino County Superior Court alleges that the scam was headed by Andrew Whitaker, 52, of Alta Loma, who had a prior real estate-related felony conviction for which he served prison time. Targets of the scheme described by Deputy District Attorney Larry Roberts were homeowners desperately trying to save their homes from foreclosure who thought they were obtaining refinancing but wound up selling their houses to straw buyers. In the process the remaining equity in their houses allegedly was stolen through inflated commissions, escrow charges and other fees. Roberts said the district attorney's investigation, which resulted in 13 felony charges being filed late Tuesday against the defendants, focused on three transactions involving properties in Moreno Valley, San Clemente and Simi Valley. Out of those transactions, Roberts said, operators of the alleged scheme pocketed over $300,000 for themselves. The mortgages for more than $2 million were obtained under false pretense by providing phony down payments and misinformation about the buyer's credit and income on loan applications, Roberts said. Then the loans were immediately sold to Countrywide, which would never have bought the mortgages if it had known the truth, he said. Because of Whitaker's criminal history, he could not have obtained a license to operate an escrow or mortgage business, Roberts said, so he brought in family members to front the operation. "The prosecution alleges (Whitaker) was the owner and operator of all the companies and certainly in direct control of them all," said Roberts. Whitaker's daughter Heather Nicole Whitaker served as president of two companies -- Nationwide Discount Home Loans and Preferred Metropolitan Escrow Inc. -- that participated in the transactions and his former wife Majgan (Mona) Cox, was the licensed real estate broker doing business as ReMax/Allegiance Realty. Also, prosecutors said Whitaker's present wife, Karren Whitaker, participated as a licensed real estate appraiser doing business as Pacific Coast Realty Appraisals Inc. All four businesses were at 10535 Foothill Blvd. in Rancho Cucamonga, according to authorities. Prosecutors narrowed their investigation to three mortgages that occurred between March and August 2007. "I am sure there are probably dozens of victims from other transactions," said senior investigator Maurice Landrum. Nationwide was incorporated in 2003 and its license expired in May of 2007, according to the state Department of Real Estate. The State Department of Corporations on March 24 took action to revoke the license of Preferred Metropolitan Escrow Inc. It filed an accusation claiming that, among other things, Preferred's license application failed to say Andrew Whitaker would be involved in the company, although a regulatory probe in September revealed that he controlled its operation. Arrested Wednesday were Andrew and Karren Whitaker, of Alta Loma; Cox, also of Alta Loma; Cox's son Jesse Sinclair Cox, of Redlands; Jason Harvey, of Bloomington; and Juleanne Brooks, of Fontana. Other defendants named in the criminal case and still at large Wednesday afternoon were Katrina Michelle Whitaker, Andrew Whitaker's older daughter, who was secretary of the mortgage and escrow companies, and Phillip Parker and Andre Thomas Silva, who were mortgage salesmen. This was the second major prosecution for mortgage fraud filed in recent months by the San Bernardino County district attorney. In March the office filed a lawsuit seeking $20 million in penalties and restitution from the operators of Lifetime Financial, accused of involvement in a statewide predatory lending scheme.