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In the following To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily. Patrick J. Fitzgerald, United States Attorney for the Northern District of Illionois advised that federal law enforcement officials have announced that 24 defendants, most of whom are professionals in the mortgage loan industry – including mortgage brokers, loan officers, loan processors, attorneys, accountants, an appraiser, and a banker – were named in 10 indictments charging them with federal offenses relating to mortgage fraud in the Chicago area. [The 10 cases are summarised below].

Nine of the indictments were the product of Operation Madhouse, an undercover investigation conducted by the Federal Bureau of Investigation and the Department of Housing and Urban Development, Office of Inspector General, in which undercover law enforcement agents posed as straw buyers of houses, seeking assistance in financing and closing fraudulent mortgage transactions.

In each of the nine cases, multiple real estate professionals worked to carry out the frauds. Each case involved a different fraudulent mortgage loan arranged by a different group of defendants based in the Chicago area.

Those defendants’ roles in the fraudulent transactions, as described in the individual indictments, included, among other things: preparing loan applications and other documents that they knew to contain false information about the undercover agents’ identity, employment, and income; creating (or explaining how the undercover agents could create) fraudulent banking information; fabricating income tax returns; creating fictitious verifications of employment and rental income; creating false appraisals; and submitting the bogus applications and supporting documents to the lenders.

In each of the undercover transactions, a cooperating individual represented that he was selling a house to a nominee buyer who intended to walk away from the property and default on the mortgage after the transaction closed. In reality, the nominee buyers were undercover agents, as were paralegals who assisted in closing the real estate transactions. The houses bought with the fraudulently obtained mortgage loans were actually owned by the federal government. Instead of defaulting on the fraudulently obtained loans after the closings (as the undercover agents had told the defendants they intended to do), the government fully repaid the lenders after each transaction closed.

The nine loans involved in the undercover project totaled approximately $1.4 million. In the tenth case, which did not result from the undercover investigation, the defendants are alleged to have fraudulently obtained approximately $4.2 million in loans, causing losses in excess of approximately $1.1 million.

“Mortgage fraud often happens with the active participation of professionals in the industry,” said Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois. “It is particularly disturbing that the fraud has continued notwithstanding widespread publicity about the real and serious consequences of mortgage fraud. We will continue to use undercover operations like Operation Madhouse so that corrupt professionals will have to wonder whether the person sitting across the closing table from them is actually an undercover agent,” he added.

Mr. Fitzgerald announced the charges together with Robert D. Grant, Special Agent-in- Charge of the Chicago Office of the Federal Bureau of Investigation; and Barry McLaughlin, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development, Office of Inspector General, in Chicago. Officers from the Burbank and Hickory Hills Police Departments also assisted with the investigation.

Mr. Grant said, “We will not stand by while real estate professionals and others exploit the financial system for their personal gain. Mortgage fraud – and the foreclosures and boarded up houses that often follow from it – has a real and significant effect on neighborhoods and property values. The FBI is working tirelessly in every part of the country to protect communities and financial institutions from the effects of mortgage fraud.”

All of the charges announced today are felonies and carry maximum penalties of 20 years in prison and a $250,000 fine on each count of mail and wire fraud, and 30 years in prison and a $1 million fine on each count of mail or wire fraud affecting a financial institution. If convicted, the Court would determine the appropriate sentence to be imposed under the advisory United States Sentencing Guidelines. Each indictment also includes a forfeiture allegation to recover from the defendants the proceeds of their schemes.

The public is reminded that indictments contain only charges and are not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the
burden of proving guilt beyond a reasonable doubt.
In the Chicago area, 21 defendants were arrested today and were arraigned in district court earlier today. The cases announced today are listed below, please click the link to read each one.
Case 1: Mohammed Ali Moallem, a mortgage broker at Quantum Financial Mortgage Company is accused with Bahidad Javid, of arranging a fraudulent mortgage on 4434 W. 117th Street, Alsip, Illinois. To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily.
Case 2: Abe Karn, owner of Interforest Mortgage Company, Donna Brooks, a loan officer at Interforest Mortgage Company, Hichem Julani, a licensed appraiser and Daniel Lietz, a VP at Charter One Bankare all accused in relation to the arranging of a fraudulent mortgage on 305 Reedwood, Joilet, Illinois. To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily.
Case 3: Marwan Atieh, a mortgage broker at Citiwide Financial and Ruwaida Dabbouseh (see also cases 4, 5 and 8) a loan officer at Silo Mortgage Group are accused of arranging a fraudulent mortgage on 11319 S. Normandy Avenue, Worth, Illinois. To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily.
Case 4: Ruwaida Dabbouseh (see Cases 3, 5 and 8)and Khalil Qandil the owner and operator of a construction and remodeling business are accused of arranging a fraudulent mortgage on 1058 Four Seasons Boulevard, Aurora, Illinois. Read more..
Case 5: Khaja Moinuddin, a mortgage broker at First Choice Mortgage, Mohammed Nasir, a loan officer at First Choice Mortgage, and Ruwaida Dabbouseh (see Cases 3, 4 and 8) are accused of arranging a fraudulent mortgage on 439 S. Elmwood Drive, Aurora, Illinois.
Case 6: Louis L. Javell a mortgage broker and owner of Bell Capital Real Estate, Aysha M. Arroyo an employee of Bell Capital and Juan Gil are accused of arranged a fraudulent mortgage on 2853 W. Everett Street, Blue Island, Illinois. Read more..
Case 7: Michael Salem, a realtor, Hakim A. Jaradat, a professional tax preparer and Robert Goldberg, owner of a construction company, are accused of arranging a fraudulent mortgage on 1225 Hickory Road, Homewood, Illinois.
Case 8: Hakim A. Jaradat (see case 7), Oscar Paredes, Maryam Khan, and attorney and Ruwaida Dabbouseh (see cases 3, 4 and 5) are also accused in connection with the arranging of the fraudulent mortgage on 2853 W. Everett Street, Blue Island, Illinois (see case 6). Read more..
Case 9: Babajan Khoshabe, a mortgage broker and the owner of Nationwide Mortgage Company Sunil Kaushal, a loan officer at Nationwide and James Kotz, an attorney,are accused of arranging a fraudulent mortgage on 4153 W. 89th Street, Hometown, Illinois. Read more..
Case 10: Siamak Safavi Fard, who owned various financial companies, Sunil Kaushal (see case 9), and Noel Parmar a loan officer, are accused of arranging a fraudulent mortgages on 2713 Norma Court, Glenview; 2962 North Oakley, Chicago; 728 North Ada Street, Chicago; 3057 W. 55th Street, Chicago; and 1947 West Chicago Avenue, Chicago. Read more..



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[The Loan Modification Team]

Loan modification although new to mainstream media have been preformed ever since loans where issued. Many companies with little to no mortgage experience are using these hard times to take advantage of distressed homeowners.