GREFPAC News Oct. - Dec. 2009

GREFPAC NEWS

Oct. - Dec. 2009

GREFPAC News is back! In an effort to improve communication to members, sponsors and allies, GREFPAC's Board of Directors decided to re-launch the newsletter. The purposes of GREFPAC News are:

- To provide information on GREFPAC;

- To provide timely information on events relating to real estate fraud prevention and awareness in Georgia; and

- To provide timely information on events relating to real estate fraud prevention and awareness at the national level which may significantly affect Georgia.

Four issues are planned for each calendar year. This issue includes articles of major interest from throughout 2009.

INSIDE GREFPAC

Get Ready for the 6th Annual Educational Conference

The 6th Annual Conference will be held February 11-12, 2010 at the Cobb Galleria Centre. The agenda is being finalized, but outstanding speakers will address evolving fraud trends as well as best practices to detect and prevent fraud. CE credits will be available for attorneys, mortgage bankers/brokers, realtors, appraisers, and CFEs. Online registration will be available soon.
>> More information

December Educational Meeting Planned

The next quarterly educational meeting will be held December 2 and will cover fraud in reverse mortgage transactions. Details will be posted to the GREFPAC website and emailed as they become available.
>> More information

September Educational Meeting Recap

Many thanks to Dan Immergluck and Alyssa Katz, the guest speakers for the September Educational Meeting. Both recently published books on the mortgage and real estate crisis. With their close ties to Atlanta, they each brought a unique perspective to the crisis, allowing us the opportunity to view mortgage fraud in the broader context of the real estate bubble and the meltdown of mortgage finance.
>> More about Dan's recent book

>> More about Alyssa's recent book

GREFPAC Volunteers Help with TV Special

Volunteers from GREFPAC and CCCS of Atlanta staff worked the phone banks during the airing of Georgia Public Broadcasting's special "Facing the Mortgage Crisis" on July 23, 2009. Over 170 viewers called in during the one-hour show, which focused on multiple aspects of the mortgage crisis and included a panel discussion on avoiding mortgage scams.

"Facing the Mortgage Crisis" can be viewed via streaming video at www.GAMortgageCrisis.org

NATIONAL NEWS AFFECTING GEORGIA

Schumer, Kyl Offer $200M Proposal to Create Mortgage Fraud Units at District Attorney Offices Across the Country

Office of U.S. Senator Charles E. Schumer | September 29, 2009

U.S. Senators Charles E. Schumer (D-NY) and Jon Kyl (R-AZ) announced new legislation to better protect homeowners from the recent wave of mortgage scams by providing up to $200 million over two years for State and local prosecutors offices to battle real estate fraud.

Schumer and Kyl's bill, known as the Fighting Real Estate Fraud Act of 2009, establishes a competitive grant program in the Department of Justice for State, local, and tribal prosecutors to fight real estate fraud. Under this bill, real estate fraud includes crimes involving purposeful misrepresentations, forgeries, and omissions to general applications, tax returns, and financial statements, appraisals and valuations, verifications of deposit and employment, escrow and closing documents, credit reports, and any actions that may defraud a secured creditor. The Attorney General is authorized to make grants on a competitive basis through the Bureau of Justice Assistance to assist prosecutors in investigating and prosecuting real estate fraud. The bill authorizes $100 million in grants for two years. These grants will be used for hiring specialized staff to offices in need of specialized resources to combat scams.
>>Read More

FHFA Update on Enterprise Implementation of the Home Valuation Code of Conduct

Federal Housing Finance Agency | July 22, 2009

The Home Valuation Code of Conduct announced by Fannie Mae and Freddie Mac in December 2008 was developed after a long period of public input and was deployed on May 1, 2009, after a four-month transition period.
>> Read More

FBI Issues 2008 Mortgage Fraud Report

FBI National Press Office | July 7, 2009

According to the Federal Bureau of Investigation's 2008 Mortgage Fraud Report, mortgage fraud Suspicious Activity Reports referred to law enforcement increased 36 percent to 63,713 during fiscal year (FY) 2008, compared to 46,717 reports in FY 2007.
>> Read More

FHFA Notice of Proposed Rulemaking Request for Comments

Federal Housing Finance Agency; Office of Federal Housing Enterprise Oversight | June 17, 2009

The Federal Housing Finance Agency (FHFA) issued a proposed regulation that would require the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Home Loan Banks (regulated entities) to report to FHFA any fraudulent financial instruments that they purchased or sold.
>> Read More

President Obama Signs the Fraud Enforcement and Recovery Act

The White House | May 20, 2009

The legislation strengthens the capacity of federal prosecutors and regulators to hold accountable those who have committed fraud. The amendments expand the Department of Justice's authority to prosecute crimes involving mortgage fraud, commodities fraud, and fraud involving U.S. government assistance provided during the recent economic crisis.
>>Read More

Mortgage Fraud at an All-Time High According to Mortgage Asset Research Institute

Mortgage Asset Research Institute-LexisNexis | March 16, 2009

Reported incidents of mortgage fraud in the U.S. are at an all-time high and increased by 26 percent from 2007 to 2008 according to a report released by the Mortgage Asset Research Institute (MARI), a LexisNexis service. The 11th Periodic Mortgage Fraud Case Report to the Mortgage Banker's Association examines the current state of residential mortgage fraud and misrepresentation in the U.S. based on data submitted by MARI subscribers.
>> Read More

GEORGIA NEWS

Supreme Court Disbars Lawyer for Conduct Related to Real Estate Transactions

Ga. Supreme Court | September 8, 2009

In its opinion in In the Matter of Leonanous A. Moore, the Supreme Court of Georgia disbarred a lawyer after finding, among other things, that he was the closing attorney for a transaction where the settlement statement listed a sales price higher than the price listed in the sales contract, wrote a check to the seller representing a portion of the "cash to seller" listed on the settlement statement, and gave the check to the buyer's loan officer.
>>Read More

Three Charged in Multi-Million Dollar Vacant Land Fraud Scheme

U.S. Attorney's Office for the Southern District of Fla. | August 31, 2009

Jeffrey H. Sloman, Acting United States Attorney for the Southern District of Florida, Michael J. Folmar, Acting Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office, and J. Thomas Cardwell, Commissioner, State of Florida, Office of Financial Regulation, announced the August 25, 2009 Indictment of defendants Daniel Stephen, 42, of Miami Shores, FL, Clotilde Jean, 43, of Miramar, FL, and Patricia DePons, 53, of Miami Shores, FL. According to the press release, this case arose from the sale of property in North Florida and Georgia by First Loan Solution.
>> Read More

Atlanta Area Lawyer Sentenced to Over 10 years in Prison for Operating a $40 Million "Ponzi" Investment Scheme

U.S. Attorney's Office for the Northern District of Ga. | August 20, 2009

Robert P. Copeland, 47, of Marietta, Georgia, was sentenced by United States District Judge Beverly B. Martin to serve over 10 years in federal prison on a charge of wire fraud, relating to a $40 million investment fraud scheme. According to the press release, Copeland falsely represented that he would use an investor's money in lucrative real estate financing and/or development activities, such as by funding a mortgage or bridge loan to a real estate purchaser who needed financing.
>> Read More

Former Ga. Attorney Pleads Guilty to Multi-Million Dollar Real Estate Ponzi Scheme

U.S. Attorney's Office for the Northern District of Ga. | July 9, 2009

Steven H. Ballard, 53, of McDonough, Georgia pleaded guilty in federal district court to committing a real estate investment scam that lasted over five and a half years and defrauded over a dozen victims in Georgia, Florida and Tennessee.
>> Read More

Former University of Ga. Football Star and NFL Player Charged with Mortgage Fraud Crimes

U.S. Attorney's Office for the Southern District of Ga. | June 10, 2009

Edmund A. Booth, Jr., United States Attorney for the Southern District of Georgia, announced that the federal grand jury sitting in Savannah has returned a twenty-two-count indictment against Arthur James Marshall, Jr. charging him with fraud and money laundering in his real estate ventures.
>> Read More

Savannah Resident Pleads Guilty in Mortgage Fraud Scheme

U.S. Attorney's Office for the Southern District of Ga. | June 1, 2009

Edmund A. Booth, Jr., United States Attorney for the Southern District of Georgia, announced that Savannah, Georgia resident Catherine A. Hickling has entered a guilty plea in a mortgage fraud scheme in U.S. District Court before Chief U.S. District Judge William T. Moore, Jr.
>> Read More

Augusta Man Pleads Guilty in Mortgage Fraud Scheme

U.S. Attorney's Office for the Southern District of Ga. | May 14, 2009

Edmund A. Booth, Jr., United States Attorney for the Southern District of Georgia, announced that Walter Edward Stuckey, Jr, age 52, of Martinez, Georgia, pled guilty to one count of mail fraud in violation of Title 18, United States Code, Section 1341, in connection with a mortgage fraud scheme.
>> Read More

First Guilty Plea Related to Fraudulent Loans Funded by Failed Bank

U.S. Attorney's Office for the Northern District of Ga. | April 24, 2009

Mark Anthony McBride, 43, a/k/a "Charles Conley,""Charles Conley, Jr.," and "Manuel Evans," of East Point, Georgia, pleaded guilty in federal district court to a conspiracy to obtain millions of dollars in fraudulent mortgages and other loans and to a bankruptcy fraud designed to stay foreclosures on dozens of fraudulently obtained properties.
>> Read More

"Sting" Sends Former Loan Officer to Prison for Mortgage Fraud

U.S. Attorney's Office for the Northern District of Ga. | April 9, 2009

Andrew John Smith, 29, of Cleveland, Georgia, was sentenced by United States District Judge William C. O'Kelley to serve over 3 years in prison on a federal charge of conspiracy to commit bank, wire and mail fraud arising from a mortgage fraud scheme.
>> Read More

Bill Introduced to Amend Ga. Residential Mortgage Fraud Act

Ga. General Assembly | February 2009

"A BILL to be entitled an Act to amend Article 5 of Chapter 8 of Title 16 of the Official Code of Georgia Annotated, relating to residential mortgage fraud, so as to modify certain provisions relating to the offense of residential mortgage fraud; to provide for legislative intent; to provide for definitions; to include in the criminal offense of residential mortgage fraud an act of fraud committed upon homeowners during or threatened with foreclosure; to provide for related matters; to provide for applicability and an effective date; to repeal conflicting laws; and for other purposes."
>>Read More

Appeals Court Interprets Ga. Residential Mortgage Fraud Act in Published Opinion for First Time

Ga. Court of Appeals | January 23, 2009

In its opinion in Gilford v. State, 295 Ga.App. 651 (2009), the Georgia Court of Appeals held, among other things, that a jury could find the defendant guilty of making deliberate misstatements and misrepresentations because she was a party to the crime.
>>Read More

NOTICE AND DISCLAIMER:
Copyright 2009 Georgia Real Estate Fraud Prevention and Awareness Coalition, Inc. All rights reserved. Unauthorized use of the Georgia Real Estate Fraud Prevention and Awareness Coalition, Inc. or GREFPAC names or logos is prohibited. You may reproduce a reasonable number of copies of this newsletter for your own personal use or for non-commercial distribution, but all all copies must be unmodified and must include the above copyright notice. Reproduction or distribution of this newsletter for commercial purposes is prohibited. GREFPAC cannot guarantee that material accessible from this newsletter is free of viruses or other malicious code, and GREFPAC does not accept any responsibility for any loss caused by any such code. GREFPAC is not responsible for any third party content, products or services that may be accessed through this newsletter, and the availability of links in this newsletter to such third party content, products or services should not be construed as referrals to, or endorsements of, the linked entities or the content, products or services that they make available. GREFPAC will cease providing links from future issues of this newsletter upon request from the linked party. The information in this newsletter is presented as general information and is not intended to be, and should not be relied upon as, legal advice or legal opinions on specific facts. You should not rely on information in this newsletter or its applicability to any specific questions or circumstances without first seeking your own professional's advice. GREFPAC is not a law firm and does not offer professional legal services. The information in this publication is not intended to create, and the transmission and receipt of it does not constitute, a confidential or lawyer-client relationship. The act of contacting GREFPAC will not create a confidential or lawyer-client relationship, and your communication will not be treated as confidential. GREFPAC makes no warranties, representations, or claims of any kind concerning the information available from, or the distribution of, this newsletter. GREFPAC and contributing authors expressly disclaim all liability to any person in respect of the consequences of anything done or omitted to be done wholly or partly in reliance upon the use or contents of this newsletter. The information contained in this newsletter may concern allegations made in civil lawsuits and in criminal indictments. Such allegations may be found by the court to be untrue. All persons are presumed innocent of criminal allegations until convicted of a crime. Court opinions may be subject to the parties' motion for reconsideration, the court's reconsideration, and editorial changes made by the reporter of decisions. We are eager to make corrections quickly and candidly. An aggrieved party need not have a letter to the editor published for us to correct a mistake. We will publish corrections on our own and in our voice as soon as we are told about them and can confirm them.

EVENTS
AT A GLANCE

Dec. 2, 2009

Quarterly GREFPAC Educational Meeting

Atlanta Junior League 3154 Northside Pkwy.
Atlanta, GA 30327

Feb. 11-12, 2010
Annual GREFPAC Conference
Cobb Galleria Centre