Agent, loan officers indicted in fraud scheme
Kickbacks alleged on sales of newly built homes
By Inman News, Monday, November 3, 2008.A real estate agent and two former loan officers are among 17 defendants indicted by a federal grand jury for their alleged roles in a $12.6 million mortgage fraud scheme involving 25 residential properties in Missouri.
Real estate agent Angela R. Clark and former mortgage loan officers Cynthia D. Jordan and Stefan M. Guerra are accused of conspiring with 14 property buyers to submit false information to mortgage lenders in order to purchase homes at inflated prices and pocket extra proceeds.
The buyers, who included six California residents, allegedly created shell companies to receive kickbacks of $60,000 to $125,000 per house from builder Jerry Emerick, doing business as Ty Construction and Residential Contracting LLC.
Lenders approved 25 loans totaling $12.6 million from June 2005 to May 2007, prosecutors said, with buyers funnelling off $2.34 million without their knowledge. Clark, 40, allegedly received approximately $381,495 in kickbacks, while the former mortgage brokers received commissions.
Prosecutors said they intend to file separate charges against Emerick, who allegedly calculated the return he wanted for the homes based on the cost of construction plus a "reasonable profit."
Clark then listed the newly built homes in Lee's Summit and Raymore at inflated prices, prosecutors said, soliciting straw buyers with the help of Jerome Shade Howard, 39, of Anaheim, Calif.
The case is one of the largest mortgage fraud rings ever prosecuted by the United States Attorney for the Western District of Missouri.
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Submitted by Anonymous on November 3, 2008 - 4:22am.
Typical behavior of the unethical, dishonest, sleazy, slimy predatory members of the NAR who
routinely perpetrate fraud on the public, and then try and hide behind their bullspit code of ethics!
Submitted by RK Ruthman on November 3, 2008 - 6:20am.
Mr. Lucier poses an interesting perspective. The real estate agent is not noted as being a REALTOR, is she?
Submitted by Michael Espiritu on November 3, 2008 - 4:25pm.
Thomas,
Although I will agree that Angela R. Clark is truly dispicable there are many hard-working brokers, agents, etc. that do not prey on people.
The real estate industry collectively is taking a lot of heat for the acts of selfish, greedy self-serving individuals who are blinded by greed.Individuals who take the Code of Ethics seriously do not end up being charged with fraud!
When you have unscrupulous real estate agents,lenders, and clients it creates a "perfect storm" for fraud as we have seen in this case.
I am assuming you had a similar experience and should report any complaints, ethics violations or bad treatment first to your local association of Realtors, state licensing board and media outlets etc.
These types of individuals ruin the client-based efforts of honest agents whose main concern is the benefit of the client not themselves.
The agents and lenders who put client neeeds first will prosper now and in the future.
Michael Espiritu
Copeland Wealth Management/ CWM Real Estate
SoCal
Submitted by Matt Carter on November 3, 2008 - 5:14pm.
Let's all keep in mind that an indictment is not a conviction. All those charged in this case are entitled to their day in court. According to the state of Missouri, Angela R. Clark is (or was) a licensed real estate "salesperson." There is no Angela Clark listed as a member of the Missouri Association of Realtors. Angela Clark was one of 52 "sales executives" recognized by Reece & Nichols in April 2007 for breaking the $1 million sales mark.