Mortgage Fraud News
Twenty-Four Charged in RICO Conspiracy
by Rachel Dollar; an attorney and Certified Mortgage Banker
Wednesday, April 08, 2009
Twenty-four individuals have been charged with using a corrupt enterprise to conduct a pattern of racketeering activity, namely, wire fraud, bank fraud, and money laundering. The charged racketeering activity all stems from an extensive mortgage fraud scheme based in San Diego, California, that involved 220 properties with a total sales price of more than $100 million dollars.
The lead defendants charged with running the corrupt enterprise are: Darnell Bell, aka D-Bell, Michael Ivy, Stanley Gentry and Billie Bishop. The indictment alleges that Darnell Bell, a documented MEMBER of the Lincoln Park STREET GANG, was THE LEADER of the corrupt enterprise and that he received at least $9 million in proceeds from the racketeering conspiracy. Michael Ivy was primarily responsible for negotiating the purchase of real estate on behalf of the enterprise. Stanley Gentry, a licensed real estate broker, allowed the corrupt enterprise to use his broker's license to facilitate the fraudulent purchase of property in exchange for a $10,000 monthly payment and a percentage of the real estate commission and broker's fees associated with each fraudulent purchase. Billie Bishop was an escrow officer who facilitated the fraudulent purchase of more than 100 properties on behalf of the enterprise.
The indictment alleges that the defendants devised a scheme to defraud mortgage lenders and to obtain money and property by false and fraudulent means. According to the indictment, between January 2005 and at least April 2008, the defendants used multiple real estate businesses, including the Ivy House, Inc., the Real Estate Center of Southern California, and the Real Estate Center of La Mesa, to facilitate the fraudulent purchase of real estate.
The indictment also charges that several real estate professionals were members of the racketeering conspiracy, including: Diana Jaime, a public notary, Jorge Cortez, a licensed real estate agent, Esteban Valenzuela, a licensed real estate appraiser, Anton Ewing, a Certified Public Accountant, and Randolph Hirsch and Dennis Tapia, registered tax preparers. Latashia McKinney and Marcus Dozzell, aka Kali, recruited individuals to obtain fraudulent mortgage loans and purchase properties on behalf of the corrupt enterprise. Lorena Callu was employed by the corrupt enterprise and facilitated the fraudulent purchase of real estate by, among other things, preparing and submitting false loan applications. Desiree Holiday, Dexter Holiday, Keith Holiday, Gerard Holiday, Ray Logan, aka Jack Nasty, David Lewis, Joseph Lewis, Stevie Frazier, Jorge Magana, Nicoele Watson and Daniel Williams are all alleged to have fraudulently obtained mortgage loans and purchased properties on behalf of the corrupt enterprise.
This case is the product of an investigation by agents of the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorneys Todd W. Robinson and Nicole Acton Jones are prosecuting the case.
SUMMARY OF CHARGES
Title 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity; Title 18, United States Code, Section 1963 - Criminal Forfeiture The charged pattern of racketeering activity includes violations of Title 18, United States Code, Section 1343 (Wire Fraud); Title 18, United States Code, Section 1344 (Bank Fraud); Title 18, United States Code, Sections 1956(h) and 1957 (Conspiracy to Launder Money); Title 18, United States Code, Section 1957 (Money Laundering)
Maximum Penalties: 20 years' incarceration, a fine of $250,000, three years of supervised release.
Twenty-Four Charged in RICO Conspiracy
by Rachel Dollar; an attorney and Certified Mortgage Banker
Wednesday, April 08, 2009
Twenty-four individuals have been charged with using a corrupt enterprise to conduct a pattern of racketeering activity, namely, wire fraud, bank fraud, and money laundering. The charged racketeering activity all stems from an extensive mortgage fraud scheme based in San Diego, California, that involved 220 properties with a total sales price of more than $100 million dollars.
The lead defendants charged with running the corrupt enterprise are: Darnell Bell, aka D-Bell, Michael Ivy, Stanley Gentry and Billie Bishop. The indictment alleges that Darnell Bell, a documented MEMBER of the Lincoln Park STREET GANG, was THE LEADER of the corrupt enterprise and that he received at least $9 million in proceeds from the racketeering conspiracy. Michael Ivy was primarily responsible for negotiating the purchase of real estate on behalf of the enterprise. Stanley Gentry, a licensed real estate broker, allowed the corrupt enterprise to use his broker's license to facilitate the fraudulent purchase of property in exchange for a $10,000 monthly payment and a percentage of the real estate commission and broker's fees associated with each fraudulent purchase. Billie Bishop was an escrow officer who facilitated the fraudulent purchase of more than 100 properties on behalf of the enterprise.
The indictment alleges that the defendants devised a scheme to defraud mortgage lenders and to obtain money and property by false and fraudulent means. According to the indictment, between January 2005 and at least April 2008, the defendants used multiple real estate businesses, including the Ivy House, Inc., the Real Estate Center of Southern California, and the Real Estate Center of La Mesa, to facilitate the fraudulent purchase of real estate.
The indictment also charges that several real estate professionals were members of the racketeering conspiracy, including: Diana Jaime, a public notary, Jorge Cortez, a licensed real estate agent, Esteban Valenzuela, a licensed real estate appraiser, Anton Ewing, a Certified Public Accountant, and Randolph Hirsch and Dennis Tapia, registered tax preparers. Latashia McKinney and Marcus Dozzell, aka Kali, recruited individuals to obtain fraudulent mortgage loans and purchase properties on behalf of the corrupt enterprise. Lorena Callu was employed by the corrupt enterprise and facilitated the fraudulent purchase of real estate by, among other things, preparing and submitting false loan applications. Desiree Holiday, Dexter Holiday, Keith Holiday, Gerard Holiday, Ray Logan, aka Jack Nasty, David Lewis, Joseph Lewis, Stevie Frazier, Jorge Magana, Nicoele Watson and Daniel Williams are all alleged to have fraudulently obtained mortgage loans and purchased properties on behalf of the corrupt enterprise.
This case is the product of an investigation by agents of the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorneys Todd W. Robinson and Nicole Acton Jones are prosecuting the case.
SUMMARY OF CHARGES
Title 18, United States Code, Section 1962(d) - Conspiracy to Conduct Enterprise Affairs Through a Pattern of Racketeering Activity; Title 18, United States Code, Section 1963 - Criminal Forfeiture The charged pattern of racketeering activity includes violations of Title 18, United States Code, Section 1343 (Wire Fraud); Title 18, United States Code, Section 1344 (Bank Fraud); Title 18, United States Code, Sections 1956(h) and 1957 (Conspiracy to Launder Money); Title 18, United States Code, Section 1957 (Money Laundering)
Maximum Penalties: 20 years' incarceration, a fine of $250,000, three years of supervised release.
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