New Hampshire Contractor Guilty In Scamming Senior In Home Repair Ripoff

The Manchester Union Leader reports:

• "A local contractor was convicted of scamming a 72-year-old Manchester man of $4,000 and failing to re-roof his house as promised, Attorney General Kelly Ayotte announced ... . After a trial in Hillsborough County Superior Court, the state found George Sideris of Manchester committed an unfair or deceptive business act or practice in violation of the New Hampshire Consumer Protection Act, Ayotte said. The Elder Abuse and Financial Exploitation Unit of the Attorney General's office reported that Sideris took the $4,000 as a deposit to buy building materials for the job, then failed to perform the work and never returned the money despite the man's repeated requests to do so."

For more, see Contractor convicted of defrauding elderly man.

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The Fleecing Of Frances Taylor

In Seattle, Washington, The Seattle Times reports:

• Seven years ago, Frances Joy Taylor was living in her own house, singing in her church choir and baking apple pies for friends. The 89-year-old widow had about $2 million in assets — which she intended to leave to her church to help children in Africa. Today, Frances lives at an adult-care home and spends her days napping in front of a television. Her care is paid for largely by taxpayers, because Frances is now bankrupt. Frances' memory is fading as fast as winter daylight, the result of a steady assault by Alzheimer's over the past eight years. Her financial demise began around the same time, when a businessman named Tyrone Dash took over her affairs.

For more on how a now-96 year old Alzheimer's patient had her mortgage-free home and other assets scammed from her, see The fleecing of Frances Taylor.

For other recent articles from The Seattle Times related to this story, see:

• Homeowners in debt, seniors prime targets of riskiest loans,
• Investigation reveals exploitation of vulnerable.

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Senior Citizens, Retirement Funds Victimized By Subprime Lending Mess

(modified 12-6-07)
The South Florida Sun-Sentinel recently reported:

• "Dozens of South Florida senior citizens have lost millions of dollars of their savings because their brokers bet wrong on risky mortgage-backed securities after promising them a stable investment. Coral Springs lawyer Darren Blum said ... that his firm, Blum & Silver, is representing about 25 investors who had invested $20 million with Brookstreet Securities, a California firm that has brokers in at least a half-dozen South Florida offices. Many investors are planning legal action to recover their losses, and for damages and attorney's fees."

According to Blum, "We've had people in their 80s in here in tears. These people are devastated." For more, see Brokers' wrong bets cost South Florida seniors millions.

Go here for related posts on how investors are being affected by investments tied to subprime mortgages, including how a Florida state-run fund experienced the equivalent of "a run on the bank" when municipal finance managers throughout the state started pulling their cash from the fund.

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New Jersey Social Worker Pleads Guilty To Scamming Senior In Home Sale Proceeds Ripoff

In New Jersey, the Bridgeton News reports:

• "A 45-year-old Egg Harbor man pleaded guilty [last week] to stealing more than $70,000 from an elderly nursing home patient. [Alexander] Gotay, a Cumberland County social worker, admitted ... [that] he stole approximately $70,000 from an elderly patient, who has since died, who had resided at Lincoln Specialty Care Center in Vineland. He admitted withdrawing the victim's life savings from her various bank accounts and stealing the proceeds from the sale of her former residence."

For more, see Social worker pleads guilty to theft.

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Cops I.D. Eight More Victims In Norfolk Home Repair Scam Targeting Seniors

In Norfolk, Virginia, The Virginian-Pilot reports:

• Police on Friday identified eight additional victims of a local home repair scam, and said there may be more who have yet to come forward. Police say the scam involved a man and a woman approaching elderly residents and telling them that their homes had water or termite damage, according to a news release. The couple required the residents to pay up front by check. Then they cashed it and disappeared, police said.

• On Nov. 30, police announced the arrest of two people in connection with the crime. Timothy Shawn Levine, 31, ..., and Keaton Taylor, 28, ..., both were charged with two felony counts of obtaining money by false pretenses and conspiracy to commit a felony.

Source: Norfolk police identify eight more victims of home repair scam.

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Florida Man Charged In Alleged Home Repair Scam That Defrauded Six Seniors

In Florida, the Daytona Beach News-Journal reported recently:

• An Ocala man accused of promising home repairs in east Volusia County, then disappearing with homeowners' deposits, was arrested ... by the State Attorney's Office. Timothy W. Gladden, 52, systematically defrauded six elderly Volusia County residents by promising home repairs that were never made after collecting thousands of dollars, according to the charging affidavit. All of the victims, who were at least 70 years old, were given a "free inspection" of their homes between late September and mid-October, the affidavit states. Gladden then presented a list of recommended repairs he offered to fix for a fee. Gladden collected just under $20,000 from his victims.

For more, see Ocala man charged in home repair scam.

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Florida Mortgage Broker, Closing Agent Sentenced In Equity Stripping / Home Improvement Scam Targeting Seniors

Tthe North Country Gazette reports that Hillsborough County, Florida resident and mortgage broker Michael Danish (10 years in prison, 20 years probation) and title insurance agency owner Donna Whitlock (probation) were sentenced for their roles in a home improvement / equity stripping scam that targeted the elderly. The story reports:

• Michael Danish was involved in a mortgage fraud scheme that victimized more than 20 individuals who were looking to use home mortgages to purchase air conditioning systems. [...] According to the investigation, Danish frequently obtained mortgages in amounts exceeding the homeowners’ requests, even obtaining some loans of which the homeowners were completely unaware. He also collected third-party checks which were required to be paid out of the loan proceeds and converted the funds to his own use, leaving many homeowners’ bills unpaid. Danish fraudulently obtained over $400,000 from more than 20 victims, many of whom were senior citizens.

***

• Whitlock [owner of Bay Point Title, Inc.] allowed Danish to close loans outside of her office and notarized the signatures without the signees being present.

Danish pleaded guilty to aggravated white collar crime, failure to disburse funds in accordance with agreements and notary fraud. Whitlock pleaded guilty to notary fraud. Both are liable for the entire amount of restitution ordered by the court. For more, see Florida Broker Pleads Guilty To Fraud.

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86 Year Old Ohio Woman Ripped Off By Foreclosure Rescue Service; Demands Full Refund

WKYC-TV Channel 3 in Cleveland, Ohio reports on Sadie Booker, an 86 year old woman holding down three jobs who was facing foreclosure on a predatory mortgage loan on her home. She paid a $500 upfront fee to Foreclosure Solutions and Mediation and Michael Shafran, a local foreclosure rescue service in Macedonia who reportedly told her they can stop the sheriff's sale. A week before the sale, they sent Sadie a letter informing her that they would be unable to help her. When she asked for a refund, they refused, saying that they get $100 an hour for their time.

Fortunately for Sadie, a member of ACORN stepped in at the last minute and reportedly was able to stop the foreclosure of the predatory mortgage on her home at no cost to her. Feeling energized by the last minute reprieve, she, backed by a gang from ACORN (and presumably a WKYC cameraman trailing behind capturing the events on video), marched over to Shafran's house demanding all of her money back.

To see what happened, watch the WKYC-TV Channel 3 report (no longer available online), or to read the online report, see Homeowners facing foreclosure are targeted again.

For a story of another Ohio foreclosure rescue service, this one being sued for allegedly ripping off homeowners out of an $1,150 upfront fee, see Foreclosure Rescue Service Sued In Cincinnati For Alleged Failure To Provide Promised Services.

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Reverse Mortgages: The Next Subprime? Part 2

Last month, the U.S Senate Special Committee on Aging held a hearing to address the concerns arising from reported financial abuses against the elderly in connection with the reverse mortgage industry. The hearing essentially reinforced two basic points:

1. When used wisely and carefully, a reverse mortgage is a great tool for senior citizens to tap into their home equity, tax free, the funds from which can be used for any purpose - thereby making their lives easier,
2. When sold recklessly by careless, untrained sales agents (or unscrupulously by sleazy sales agents), peddling reverse mortgages is a great way to screw elderly homeowners out of their home equity, leaving them in jeopardy of losing their homes.

In other words, it may not be the reverse mortgage itself that's bad, it's the person selling it that will ultimately determine whether (1) or (2), above applies (although watch out for "equity sharing, contingent interest" reverse mortgages, which may be available through non-HECM connected lenders).

Among some of the problems raised at the hearing:

1. unscrupulous sales agents convincing seniors to get a reverse mortgage and then use some of the proceeds to purchase a deferred annuity [some sales agents, working in tendem with home improvement contractors, will convince elderly homeowners that it is mandatory to use some of the proceeds to make overpriced, unnecessary home repairs],
2. reverse mortgage companies heavily recruiting sales agents, offering opportuinites to "double their commissions" by selling elderly homeowners reverse mortgages contemporaneously with annuity products,
3. no suitablity standards to determine if a reverse mortgage is right for a particular homeowner,
4. so-called "independent" HUD counselors that may not be all that independent,
5. no training, certification, or background checks required for HUD counselors; the counseling agency is required to have a HUD certification, but they can then turn around and hire anybody to actually do the counseling (ie. convicted felons, con artists, sleaze bags OK),
6. no real counseling requirements; face-to-face counseling not required - can be done over the phone; the "counseling" is limited to conveying an understanding of the loan terms - not of whether getting a reverse mortgage is actually a suitable arrangement for the particular senior considering the mortgage,
7. there are many ways for senior homeowners to lose their homes after getting the reverse mortgage that are never addressed during the sales pitch (contrary to what respected actor Robert Wagner and other paid celebrity spokespeople say on TV commercials and DVD marketing propaganda put out by the companies peddling reverse mortgages),
8. deceptive and misleading (without necessarily being technically incorrect) use of terms to describe reverse mortgages (ie. "HUD-regulated," "government insured" and " a benefit from the Federal government") to instill in the senior citizen homeowner trust and confidence in the product,
9. selling reverse mortgages to unmarried seniors who may be bound for a nursing home (spending 12 months in a nursing home by an elderly homeowner is enough to cause a due date acceleration of the reverse mortgage, thereby forcing a sale of the senior's home if they can't otherwise pay it off by cutting a check or refinancing it).

Written statements were submitted by witnesses who testified at the hearing:

• Statement of Carol Anthony, daughter of a victimized elderly homeowner of an unscrupulous sales agent selling a reverse mortgage tied to an annuity, resulting in significant loss of home equity,
• Statement of Prescott Cole, Senior Staff Attorney, California Advocates for Nursing Home Reform on behalf of Coalition to End Elder Financial Abuse, on the abusive marketing practices engaged in by some selling reverse mortgages,
• Go here for links to the written statements submitted by other witnesses, as well as the opening statements from the committee chairman, Sen. Herb Kohl (D-WI.) and the ranking member, Sen. Gordon Smith (R-OR).

To watch the actual webcast of the hearings, see Reverse Mortgages: Polishing not Tarnishing the Golden Years (requires Real Player media player).

Go here for Reverse Mortgages: The Next Subprime? Part 1.

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NYC Attorney Charged In Deed Theft Of Home Of Elderly Stroke Victim; Swindle Of Serviceperson's Home Sale Proceeds

In New York City, the Queens County District Attorney's office reports:

• Queens District Attorney Richard A. Brown [Thursday] announced that a suspended Richmond Hill attorney and a licensed Queens Village real estate broker have been charged with selling the house out from under an elderly Jamaica, Queens, man who had been hospitalized after suffering a stroke and then repeatedly flipping the property to drive up the price. [...] The District Attorney identified the defendants as attorney N. Stephen Sukhdeo, 41, ... and [real estate broker] Mohammed M. Keita, 48.

They both are presently awaiting arraignment on charges of second degree grand larceny, second-degree forgery, first-degree falsifying business records and first-degree offering a false instrument for filing. Attorney Sukhdeo is additionally charged with criminal possession of forged documents. If convicted, the defendants face up to fifteen years in prison.

In a separate criminal complaint filed against Sukhdeo, he is charged with participating with another real estate broker, Richard Persuad, in swindling almost $100,000 from an active duty serviceperson who was overseas at the time of the swindle in the sale of her home. Persaud, 36, was arrested on August 2, 2007, and is charged with second-degree grand larceny, first-degree falsifying business records and first-degree scheme to defraud.

For more, see Queens DA Press Release - Suspended Queens Attorney And Licensed Real Estate Broker Charged In Real Estate Fraud Schemes (Alleged Victims Include an Elderly Stroke Victim and U.S. Army Sergeant Serving Overseas).

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Three Charged In Theft Of Seven Homes From Detroit-Area Seniors

In Detroit, Michigan, The Detroit News reports:

• Calling them "heartless and cruel", Wayne County officials announced charges against three men accused of swindling three senior citizens out of $600,000 through deed fraud and identity theft.

Charged in the felonies are:

• Paul Rhodes, 35, of Novi (being sought by cops, faces seven counts of fraud, money laundering and larceny by conversion and faces up to 10 years in prison);
• Nelson Sumpter, 42, of Pittsfield Township (41 felony counts; including uttering and publishing, forgery, false pretenses over $20,000, identity theft, larceny by conversion and money laundering - can face up to life in prison as habitual offender); and
• Omar Sumpter, 35, of Sterling Heights ( four counts of identity theft, money laundering, and false pretenses - faces up to 10 years in prison).

The lead prosecutor in the case explained how the swindle worked:

• "They would claim to be real estate professionals who help homeowners to sell their property to potential investors. They tell the home owners that they need their signature to line up investors. They then copy or scan the signature to grant themselves power of attorney. Then they sell the house and keep the money. The victim not only doesn't receive any money, they also lose their home."

According to the prosecutor, the three victims (all of Detroit) included a 72 year old woman, a 76-year-old woman, and a 66-year-old man who lost five homes in the swindle. For more, see 3 accused of swindling homes from seniors.

See also, Wayne County Prosecutor Press Release (Wayne County Deed Fraud Task Force) - Prosecutor, Register of Deeds, and Wayne County Sheriff Announce New Identity Theft and Deed Fraud Charges.

--------------------

Last November, a media story from Philadelphia, Pennsylvania reported on similar problems with deed theft in that city. To get the attention of a couple of Pennsylavnia political heavyweights, an investigative reporter at a local television station did a story where she went out and "stole" the homes of Pennsylvania Governor Ed Rendell, Philadelphia Mayor John Street, Pennsylvania Speaker of the House John Perzel using phony deeds. To see the looks on their faces when the investigative reporter showed them she was the new owner of their homes, see Fake Deeds Steal Homes (NBC 10 - Philadelphia).

To read the online story, see Investigators: Homes Stolen With Fake Deeds.

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Ohio AG Gets Indictment Of Man In Alleged Refinancing / Deed Theft Scam

From the Ohio Attorney General's office:

• "Attorney General Marc Dann and the Franklin County Prosecutor’s office have secured the indictment of Christian Lambright for defrauding an 81 year old Columbus resident. Lambright’s indictment by the Franklin County Grand Jury on felony counts of Theft, Securing Writings by Deception, and Money Laundering follows a three week investigation by the Ohio Organized Crime Investigations Commission mortgage fraud task force."

• "The victim in this case and her family had discussed refinancing her home with Lambright, who said he was a loan officer for a local mortgage broker. Instead of preparing refinancing paperwork, it is alleged that Lambright concocted a scheme to have the property transferred into the name of his own mother. It is also alleged that Lambright stole money from the closing proceeds."

• "Investigators say Lambright picked the victim up at her home in late June without her family’s knowledge. Authorities say he then took the woman, who had recently been released from the hospital, was on medication, and could not walk without a walker, to a local fast-food restaurant where he arranged for the paperwork to be signed."

For more , see Ohio AG Press Release - Attorney General Marc Dann’s Organized Crime Investigations Commission busts Columbus man for mortgage fraud (Man preyed on elderly victim soon after hospital visit).

For grand jury charges, see Indictment - State of Ohio vs. Lambright.

See also, Local man indicted for mortgage fraud (Business First of Columbus).

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Undercover Sting Nails Three In California Home Theft Try

In San Bernadino County, California, The Press Enterprise reports:

• San Bernardino County district attorney officials arrested three San Bernardino women in an undercover sting last week after they attempted to fraudulently transfer property belonging to a 72-year-old cancer victim from Georgia. District attorney's officials announced Monday that the women were lured to the First American Title office, 303 W. Court St., where they gave undercover investigators a fake license and forged a signature. Kayla Stewart, 47, Lisha Lee, 36, and Valerie Nabors, 26, each were charged with conspiracy to commit forgery, identity theft and financial elder abuse. More arrests are possible, Landrum said.

Source: Three arrested in real-estate case (3rd blurb from the top).

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Elderly North Dakota Woman Allegedly Ripped Off By Nephew, Home Sale Proceeds Unaccounted For

Reed Lloyd Satrom, 55, faces two felonies and stands accused of swindling his elderly aunt out of thousands of dollars, reports In Forum News. Satrom, in whom his aunt's trust was so strong that she granted him power of attorney three years ago – two years after being diagnosed with Alzheimer’s – allowing him to make her financial and legal decisions. According to the aunt's current legal guardian, when commenting about his inability to document where all of the aunt's assets went, “When you add up all the numbers it approaches half a million dollars. We don’t know where all the money went.” Included in the amounts unaccounted for is $225,000 representing the proceeds of the sale of her farm. For more, see Nephew accused of abuse of trust.

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Two Sacramento-Area Men Charged With Home Repair / Reverse Mortgage Scam

This is an old story from the archives, but worth posting anyway. The Sacramento Bee reported back in March, 2006:

• Sacramento County Sheriff's detectives are asking elderly people beware of scams involving reverse mortgages. Two men were arrested [...] on suspicion of scamming a 75-year-old woman out of more than $40,000 from her reverse mortgage, Sgt. R.L. Davis said.

• William Patrick, 62, was presented to the woman as a financial advisor when she was looking at a reverse mortgage to help her escape financial problems. Patrick allegedly told her she needed to do some house repairs in order to qualify, Detective Rick Emerson said.
  "Patrick helped her make decisions," Emerson said.

• He introduced her to Michael Morales, 47, who proceeded with the repairs, charging her three times the amount, Emerson said. He is not a licensed with the state, Emerson said. At one point in 2003, the woman changed her mind about the reverse mortgage but was unable to pay for the repairs and had to move forward on it. Since then Patrick allegedly forged the woman's name to an account and was able to gain access to the money from the reverse mortgage, taking more than $40,000, Davis said.

The criminal charges involved in this case are suspicion of:

1. embezzlement,
2. grand theft,
3. theft from an elder,
4. forgery, and
5. obtaining money under false pretenses.

For more, see Pair arrested in reverse mortgage scam.

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Elderly California Man Falls For Sweepstakes Scam; Borrowed Against Home To Make Payments, Now Facing Foreclosure

The Sacramento Bee reports on the story of a 74 year old man who got sucked into a sweepstakes scam that used a series of official-looking letters that convinced him he had won $450,000, but left him out $125,000, behind on his mortgage payments, and facing foreclosure. According to the story:

• "The [initial letter's] letterhead read "American Federal Direct Consumer Protection Agency" and bore an official-looking seal. [...] Over the months, [he] received dozens more faxed letters, some that purported to be from the U.S. Department of Homeland Security, the Internal Revenue Service, the Sacramento County grand jury and Sacramento Mayor Heather Fargo. The faxes had letterheads that appeared to be copied from government Web sites. They instructed [him] to pay various fees and taxes, generally in amounts of $2,000 or $3,000, before he could receive his lottery winnings. [...] By the time Williams realized last week that it was all a scam, the 74-year-old great-grandfather said he had sent about 40 wire transfers totaling $125,000 to Costa Rica and other locations. He borrowed the money using his Florin-area home as collateral and took cash advances on his credit cards."

For more, see Sweepstakes scam fleeces Florin-area man (The 74-year-old paid about $125,000 and took out a home loan).

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NBC Nightly News On Reverse Mortgages

Last Thursday, the NBC Nightly News ran a report on reverse mortgages and featured a California senior citizen homeowner who only needed a few bucks to fix her porch, and now fears that she may be facing financial ruin as a result of a reverse mortgage she took out. Reportedly, as part of the deal in getting the reverse mortgage, the sales agent sold the 78-year old woman a long term annuity that doesn't mature until 2033, and faced a 20% penalty for trying to access that money early. She is now part of a class action lawsuit going after the sales agent, the broker, and the lender alleging elder financial abuse.

To watch the report, see Back-stabbed by reverse mortgages? (no longer available online).

See also Pitfalls to Reverse Mortgages (NBC video).

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Upstate NY Man Sells Elderly Parents Home Out From Under Them

In New Windsor, New York, the Times Herald-Record reports:

• It took just five months for Paul Tartaglia Jr. to be arrested, spill his guts to police and shuffle off to state prison for selling his parents' house out from beneath them. Now comes the hard part for Paul Tartaglia Sr. and his wife, Angela: getting back their house.

• When their son took a plea-bargain in September, he pleaded guilty to grand larceny, which covered the money from the bogus home sale and money he took from a former girlfriend who bore him a son. Between all his victims, Tartaglia's on the hook for $338,000. But Tartaglia's plea didn't provide an explanation for how he stole the money. He didn't explain the sale of his parents' house.

• That leaves Paul and Angela Tartaglia mired in a civil suit with, among others, their son, a mortgage company, a bank, a title insurance company and a Bronx man who somehow received legal authority — called power of attorney — to act on behalf of the Tartaglias and sell the house on a placid block in New Windsor, where they've lived for nearly 40 years.

• Paul Tartaglia Sr. says he found out about the sale by accident earlier this year, when he went to Town Hall to pay a water bill and discovered it had already been paid by a complete stranger. The Tartagalias also found out that someone had taken out a new mortgage on their house.

For more, see House-selling scam leaves parents in bind.

For story update, see Fake legal form tangles case of home-sale scam (Times Herald-Record - 11-24-07).

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