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untanglingwebs
El Supremo
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Fenton man convicted of massive mortgage fraud accused of attacking federal prosecutor
Gary Ridley | gridley@mlive.com By Gary Ridley | gridley@mlive.com
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on February 24, 2014 at 6:50 PM, updated February 24, 2014 at 8:38 PM
DSC_1891#29211.JPG
Ronnie Duke is the CEO of "1 BADLS1 Racing, Inc.", G-5200 Clio Rd. in Mt. Morris. This is a picture of his front shop where he displays some of his racing cars and also his client's racing cars. (Date shot: 5/3/04) (THE FLINT JOURNAL / LISA DEJONG)
DETROIT, MI -- A Fenton man convicted of what prosecutors called the largest mortgage fraud in state history is accused of attacking a federal prosecutor after he was apprehended by U.S. Marshals for failing to show up and serve his prison sentence.
Ronnie Edward Duke was in court Monday, Feb. 24, following his arrest by U.S. Marshals in Saline earlier in the day for failing to report to prison after pleading guilty to a multi-million dollar mortgage fraud scheme, Gina Balaya, public information officer for the United States Attorney's Office in the Eastern District of Michigan.
Balaya said Duke was in Detroit U.S. District Court when he allegedly attacked a female assistant U.S. attorney. Balaya declined to comment on the identity of the U.S. attorney or any potential injuries sustained during the alleged attack.
"We're treating her as we do any other victim," Balaya said.
Balaya said U.S. Marshals made the arrest after receiving a tip. She declined to comment further on the details of the arrest or the information that led officials to Duke.
Detroit-based attorney Harold Z. Gurewitz, who represented Duke in his criminal case declined to comment on Monday's incident, saying he was not in the court at the time of the alleged attack and that he no longer represents Duke.
Duke was ordered to surrender to the Bureau of Prisons on June 3, 2013, after being sentenced April 8, 2013, to 13 years in federal prison for the scheme that included more than 180 metro Detroit homes and 100 straw borrowers.
Detroit U.S. District Judge Julian Abele Cook had released Duke from custody on a $20,000 unsecured bond after he pleaded guilty despite objections from federal prosecutors.
"Duke has nothing left to lose and no incentive to stay," Assistant U.S. Attorney Erin Shaw wrote on the issue of bond in a sentencing memorandum submitted to the court on behalf of the government. "Simply put, the time has come."
Federal prosecutors indicted Duke Nov. 26, 2013, on a single charge of failing to surrender for sentence.
Duke pleaded guilty to being the leader and organizer of a scheme to defraud mortgage lenders out of millions of dollars by using straw borrowers to obtain "real" loans and "ghost" loans.
A real loan would typically be closed at the offices of a legitimate title company but was fraudulent due to the fact the straw borrower did not provide the down payment funds themselves or intend to live in the house, according to court records. Duke actually provided the down payment funds and artificially inflated the borrower's income on the loan application.
The ghost loans were entirely a sham in that there was no actual transfer of a legal title from the seller to the straw borrower. Shell companies were created by Duke to act as closing companies to deceive lenders.
Proceeds from the scheme were used by Duke to fund his racing business, purchase expensive cars and a helicopter.
Duke was also ordered pay $95 million in restitution and a $1 million fine for the scheme that lasted for close to four years, ending in July 2007, when the FBI executed seven search warrants in metropolitan Detroit and Florida.
The U.S. Sixth Circuit Court of Appeals dismissed an attempt by Duke to appeal the sentence in September 2013, citing his failure to show for his prison sentence.
Balaya said no new charges have yet been filed against Duke and the incident is under investigation by the U.S. Marshals and FBI. |
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Wed Feb 26, 2014 4:21 pm |
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untanglingwebs
El Supremo
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Mortgage Fraud Ringleader Sentenced to 13 Years
U.S. Attorney’s Office
April 08, 2013
Eastern District of Michigan
(313) 226-9100
A 45-year-old Fenton man was sentenced today to 13 years in prison in connection with a multi-million-dollar mortgage fraud conspiracy, United States Attorney Barbara L. McQuade announced.
Joining McQuade in the announcement was Special Agent in Charge Robert D. Foley, III, head of the Detroit Division of the Federal Bureau of Investigation (FBI).
U.S. District Judge Julian Abele Cook, Jr. also sentenced Ronnie Edward Duke to pay a $1 million fine and $94 million in restitution. Duke led the scheme for close to four years, ending in July 2007 when the FBI executed seven search warrants in metropolitan Detroit and Florida.
The scheme involved more than 450 fraudulent mortgage loans, more than 100 straw buyers, and approximately 180 different residential properties in metropolitan Detroit that were used as collateral for the loans. Most of these loans went into default and foreclosure. The loans ranged from roughly $350,000 to $600,000. Lenders were deceived by counterfeit purchase agreements, fake closing documents, and fictitious title companies that were actually controlled by Duke and his co-conspirators. The warranty deeds and mortgages associated with the majority of the loans went unrecorded, leaving the lenders completely unsecured. Such loans were commonly referred to as “ghost” loans by the defendants during the scheme.
“Mortgage fraud not only harms lenders, but it also affects all of us when foreclosures lead to vacant homes, which reduce property values and create havens for criminal activity,” McQuade said.
“Those who orchestrate and conduct mortgage fraud schemes that steal millions of dollars from innocent victims will face severe consequences for their crimes,” Foley said. The FBI remains committed to pursuing and prosecuting anyone who engages in these illegal acts.”
Fifteen of Duke’s co-conspirators were previously sentenced, including:
◾Ryan Andrew Zundel, 38, of Brewton, Alabama—10 years
◾Nicole Lynn Rothe (formerly Nicole Lynn Turcheck), 34, of Gibraltar—10 years
◾William Camsell Wells, III, 42, of Howell—eight-and-a-half years
◾Wilinevah Richardson, 35, of Davison—five years
◾Donna Marie Walbrook, 50, of Westland—five years
◾Anthony Edward Peters, 75, of Monroe—41 months
◾Robert Brierley, 46 of Westland—33 months.
Duke spent his fraud proceeds to operate a car racing business called Hardcore Racing Inc. He purchased numerous sports cars, race cars, boats, motorcycles, and a helicopter. Duke’s co-defendants used their proceeds to finance unrelated businesses and to purchase luxury items, including cars, boats, motorcycles, race horses, residential properties, and travel to the Caribbean and other overseas vacation destinations.
Duke’s criminal history includes embezzlement, credit card fraud, receiving and concealing stolen property, escape, aggravated stalking, and disturbing the peace.
This case was prosecuted by Assistant United States Attorneys Erin Shaw and Stephen Hiyama and investigated by the FBI, with the assistance of the U.S. Secret Service. |
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Wed Feb 26, 2014 4:24 pm |
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untanglingwebs
El Supremo
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Don't Be A Victim Of Loan Fraud
Protect Yourself from Predatory Lenders
Buying or refinancing your home may be one of the most important and complex financial decisions you'll ever make. Many lenders, appraisers, and real estate professionals stand ready to help you get a nice home and a great loan. However, you need to understand the home buying process to be a smart consumer. Every year, misinformed homebuyers, often first-time purchasers or seniors, become victims of predatory lending or loan fraud.
Don't let this happen to you!
11 Tips On Being A Smart Consumer
1. Before you buy a home, attend a homeownership education course offered by the U.S. Department of Housing and Urban Development (HUD)-approved, non-profit counseling agencies.
2. Interview several real estate professionals (agents), and ask for and check references before you select one to help you buy or sell a home.
3. Get information about the prices of other homes in the neighborhood. Don't be fooled into paying too much.
4. Hire a properly qualified and licensed home inspector to carefully inspect the property before you are obligated to buy. Determine whether you or the seller is going to be responsible for paying for the repairs. If you have to pay for the repairs, determine whether or not you can afford to make them.
5. Shop for a lender and compare costs. Be suspicious if anyone tries to steer you to just one lender.
6. Do NOT let anyone persuade you to make a false statement on your loan application, such as overstating your income, the source of your downpayment, failing to disclose the nature and amount of your debts, or even how long you have been employed. When you apply for a mortgage loan, every piece of information that you submit must be accurate and complete. Lying on a mortgage application is fraud and may result in criminal penalties.
7. Do NOT let anyone convince you to borrow more money than you know you can afford to repay. If you get behind on your payments, you risk losing your house and all of the money you put into your property.
8. Never sign a blank document or a document containing blanks. If information is inserted by someone else after you have signed, you may still be bound to the terms of the contract. Insert "N/A" (i.e., not applicable) or cross through any blanks.
9. Read everything carefully and ask questions. Do not sign anything that you don't understand. Before signing, have your contract and loan agreement reviewed by an attorney skilled in real estate law, consult with a trusted real estate professional or ask for help from a housing counselor with a HUD-approved agency. If you cannot afford an attorney, take your documents to the HUD-approved housing counseling agency near you to find out if they will review the documents or can refer you to an attorney who will help you for free or at low cost.
10.Be suspicious when the cost of a home improvement goes up if you don't accept the contractor's financing.
11. Be honest about your intention to occupy the house. Stating that you plan to live there when, in fact, you are not (because you intend to rent the house to someone else or fix it up and resell it) violates federal law and is a crime.
What is Predatory Lending?
In communities across America, people are losing their homes and their investments because of predatory lenders, appraisers, mortgage brokers and home improvement contractors who:
•Sell properties for much more than they are worth using false appraisals.
•Encourage borrowers to lie about their income, expenses, or cash available for downpayments in order to get a loan.
•Knowingly lend more money than a borrower can afford to repay.
•Charge high interest rates to borrowers based on their race or national origin and not on their credit history.
•Charge fees for unnecessary or nonexistent products and services.
•Pressure borrowers to accept higher-risk loans such as balloon loans, interest only payments, and steep pre-payment penalties.
•Target vulnerable borrowers to cash-out refinances offers when they know borrowers are in need of cash due to medical, unemployment or debt problems.
•"Strip" homeowners' equity from their homes by convincing them to refinance again and again when there is no benefit to the borrower.
•Use high pressure sales tactics to sell home improvements and then finance them at high interest rates.
What Tactics Do Predators Use?
•A lender or investor tells you that they are your only chance of getting a loan or owning a home. You should be able to take your time to shop around and compare prices and houses.
•The house you are buying costs a lot more than other homes in the neighborhood, but isn't any bigger or better.
•You are asked to sign a sales contract or loan documents that are blank or that contain information which is not true.
•You are told that the Federal Housing Administration insurance protects you against property defects or loan fraud - it does not.
•The cost or loan terms at closing are not what you agreed to.
•You are told that refinancing can solve your credit or money problems.
•You are told that you can only get a good deal on a home improvement if you finance it with a particular lender.
Remember:
If a deal to buy, repair or refinance a house sounds too good to be true, it usually is!
Housing counselors working at HUD-approved agencies can help you be a smart consumer. To find a counselor near you, call (800) 569-4287 or go to HUD's housing counselors list online.
The U.S. Department of Housing and Urban Development |
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Wed Feb 26, 2014 4:27 pm |
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untanglingwebs
El Supremo
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Wed Feb 26, 2014 4:33 pm |
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