Key Figure In Erie Mortgage Scam Gets 6+ Years In Federal Pen

In Erie, Pennsylvania, the Erie Times News reports:

• Erie businessman Robert L. Dodsworth has been sentenced to six years and four months in federal prison for his role in a widespread mortgage-fraud scheme. [...] The government claims that Dodsworth and others bought run-down houses in Erie and sold them at artificially inflated prices.

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• Dodsworth said he simply wanted to help less-fortunate Erie residents become homeowners -- and make money doing it. "I realize it was illegal now to do it," Dodsworth, 60, said at his three-hour sentencing hearing in federal court before U.S. District Judge Sean J. McLaughlin. "My intent was to clean up homes in the city. ... And make money.

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• Most of the buyers were low-income, and many of them knew little about buying homes, the government said in court paperwork. Nearly 200 properties were involved in the probe, and federal officials said victims lost more than $1 million between 2003 and 2006. Five people, including Dodsworth, have been charged in the case.

For more, see:

• Scheme brings 6 years in prison,
• Dodsworth gets more than 6 years in mortgage-fraud case,
• Fraud case pushed to today.

Go here for other posts related to the Erie, Pa. FBI mortgage fraud probe. Robert Dodsworth

2nd Co-Conspirator Cops Plea In Erie Mortgage Fraud Scam

In Erie, Pennsylvania, the Erie Times News reports:

• Frank Kartesz II, the co-owner of an Erie home redevelopment business, pleaded guilty [Monday] to fraud and conspiracy charges in relation to a widespread mortgage-fraud scheme in the city of Erie. [...] He is among five people charged by the federal government in relation to the mortgage fraud case, which the FBI, Internal Revenue Service and other agencies have been investigating since 2004.

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• Frank Kartesz II and Robert L. Dodsworth now share something else ---both have entered guilty pleas as part of a widespread local mortgage-fraud scheme. [...] The government claims that Kartesz -- who was accused nearly eight years ago of being part of a Jamestown, N.Y., housing scam -- was part of a scheme in which he and others bought run-down houses and sold them at artificially inflated prices. Most of the buyers had low income and knew little about purchasing a home.

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• Dodsworth, 60, pleaded guilty to fraud and conspiracy charges in November. Kartesz and Dodsworth ran K&D Enterprises, a home-redevelopment firm at the center of the housing fraud probe.

For more, see:

• Mortgage fraud co-defendant pleads guilty,
• 'What he did was wrong' (2nd guilty plea entered in mortgage scam).

Go here for other posts related to the Erie, Pa. FBI mortgage fraud probe. Robert Dodsworth

Pennsylvania Feds Charge Erie Man With Fraud Conspiracy, Money Laundering Regarding Fraudulently Obtained Home Mortgages

In Erie, Pennsylvania, the Erie Times-News reports on the legal trouble of local businessman Robert L. Dodsworth and R.L.D. Enterprises. According to the story:

• Dodsworth, 60, is the president of RLD Enterprises, [a] home-redevelopment firm in Erie. He was charged Friday with felony conspiracy and money laundering in relation to an ongoing federal investigation into suspected mortgage fraud. Dodsworth is the first person charged in the probe, which includes a grand jury. [...] Court records indicate Dodsworth -- one of the probe's main figures -- intends to plead guilty at a hearing scheduled for U.S. District Court in Erie on Nov. 19. The government alleges Dodsworth worked with "unnamed co-conspirators," indicating others could be charged.

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• The FBI, Internal Revenue Service and other agencies since the summer of 2004 have been probing whether the sale of nearly 200 city of Erie properties involved inflated appraisals or other fraudulent information that led buyers to pay far more than market value for their homes. Many of the homebuyers have either lost their homes to foreclosure or have fallen behind on payments, according to documents and interviews.

Said one of Dodsworth's alleged victims, "I know it sounds vindictive, but I hope he goes to jail. I'm still upset with everything I had to go through, but I'm glad that finally something's being done about all this. The FBI didn't forget about us."

For more, see 'I hope he goes to jail' (Homebuyers say dealings with businessman charged in mortgage fraud probe seemed 'fishy').

For an earlier story, see Fraud case: Plea close (Erie businessman faces charges in three-year federal probe of suspected mortgage scams).

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Erie, Pennsylvania Mortgage Fraud Scam Alleged In Both Criminal & Civil Proceedings

In Erie, Pennsylvania, the Erie Times-News reports that last Friday, mortgage broker Frank Conti, who used to head the local office of Regal Financial Services, was at the center of a series of claims that one of his customers -- Eloise Woodsbey, made in a civil case filed in Erie Federal Court. Woodsbey claims that she was defrauded when she bought her home in 2004.

Earlier on Friday, Regal Financial Services was mentioned in court documents outlining a federal criminal case against Erie home redeveloper Robert L. Dodsworth, who is accused of helping to run a mortgage fraud scheme. Conti has not been charged in the criminal case, and he has said he did nothing wrong in the civil case. According to the story:

• Court filings in the Dodsworth and Woodsbey cases claim Conti or Regal Financial, which also has an office in Pittsburgh, participated in mortgage transactions that have led to allegations of fraud. Both cases will unfold in U.S. District Court in Erie in the coming weeks. Dodsworth, 60, the owner of RLD Enterprises, is scheduled to appear at a plea hearing on Nov. 19, and court records indicate he plans to plead guilty to the felonies of money laundering and conspiracy to commit mail fraud, wire fraud and bank fraud.

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• Woodsbey's house ... was one of nearly 200 properties that became the focus of the FBI and Internal Revenue Service as agents investigated the suspected fraud scheme. And Woodsbey's civil suit makes claims similar to the allegations the U.S. Attorney's Office in Erie is making against Dodsworth.

• In the criminal case, the government is alleging Dodsworth and other "unnamed co-conspirators" manipulated financial records to make prospective homeowners, many of them unsophisticated and poor, eligible for mortgages they otherwise would have been unable to afford between January 2003 and March 2006. The criminal information filed against Dodsworth alleges he and the others artificially inflated customers' bank accounts.

Representing Woodsbey in her civil case is Margaret Schuetz, of the nonprofit Community Justice Project in Pittsburgh.

For more, see Suit names mortgage broker (Man headed office also mentioned in criminal housing fraud case).

For story update, see:

• Erie businessman pleads guilty in mortgage-fraud case (Erie Times-News - 11-19-07)
• Plea expected in fraud case (Erie Times-News - 11-19-07).

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Feds Indict Three More In Erie, Pa. Mortgage Fraud Probe

In Erie, Pennsylvanis, the Erie Times News reports:

• Three Erie County men now face charges of fraud and conspiracy as part of the ongoing federal investigation into a widespread mortgage scam in Erie. U.S. Attorney Mary Beth Buchanan announced Tuesday the defendants were indicted by a federal grand jury in relation to the probe. Indicted Tuesday were Gregory M. Finney, 34, of [...] Erie; Francis R. Conti, 41, of [...] Waterford; and 49-year-old Keith A. Rice, of [...] Harborcreek Township. The government's 17-count indictment alleges that Finney, Conti, Rice and others were part of a scheme in which they bought run-down houses and sold them at artificially inflated prices. The buyers were mostly low-income people who knew little about how to buy a home.

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• Erie businessman Robert L. Dodsworth, 60, pleaded guilty to conspiracy and money-laundering charges related to the case in November. [...] His business partner, Frank Kartesz II, 39, of Harborcreek, was charged with fraud and conspiracy counts on Jan. 31. Kartesz was expected to plead guilty in federal court in Erie on Thursday, but federal officials said that hearing could be postponed. [...] Dave Pesch, the housing counseling manager at Erie's St. Martin Center Inc., said the case shows how widespread mortgage fraud is in Erie. Pesch's agency assists low- and moderate-income homebuyers and worked with dozens of clients caught up in the probe.

For more, see More mortgage charges (3 more indicted by federal grand jury in ongoing fraud case).

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Pennsylvania Man Cops Federal Plea In House Flipping Operation; Investigation Focusing On About 200 Deals Continues

In Erie, Pennsylvania, the Erie Times-News reports:

• [Robert L.] Dodsworth -- a central figure in [an] ongoing federal mortgage-fraud investigation in Erie -- pleaded guilty in U.S. District Court in Erie on Monday to felony conspiracy and money-laundering charges related to the probe. With the plea, Dodsworth, 60, became the first and, so far, only person to admit wrongdoing in the mortgage-fraud investigation, which the FBI, Internal Revenue Service and other agencies initiated in 2004.

• Dodsworth admitted to working with others to falsify mortgage applications for homebuyers, most of them poor and unsophisticated, who otherwise would have been unable to afford mortgages and buy houses.

• The investigation that included Dodsworth has focused on the sale of nearly 200 Erie homes. The FBI and other agencies have been looking at whether the sales involved inflated appraisals or other fraudulent information that led those buyers to pay far more than market value for their homes. Most of the sales occurred in low-income Erie neighborhoods, and most of the financing was arranged through subprime mortgages ... .

For more, see Guilty as charged (Restitution part of plea in mortgage-fraud case).

For more on this scam, see Money from suburbs helped finance inner-city fraud.

For story update, see Fraud probe figure seeks lawyer (Court appoints public defender for businessman) ("Another local businessman has been connected to the federal criminal probe of suspected mortgage and housing fraud in Erie. Several low-income homebuyers claim the businessman, Keith A. Rice, acted as an ad-hoc real estate agent when they purchased their properties. Rice, 49, last week requested that a federal public defender be appointed to represent him as part of a criminal case in U.S. District Court in Erie.").

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Pennsylvania Homeowner, Deutsche Bank Settle Foreclosure Action

In Pennsylvania, the Erie News-Times reports:

• Erie resident Eloise Woodsbey, a disabled single mother of three, claimed she was the victim of mortgage fraud, and she sued an international financial giant to try to save her East Ninth Street house from foreclosure. The giant has blinked. Woodsbey and the German-based Deutsche Bank have reached a tentative deal that is expected to prevent the bank from foreclosing on Woodsbey's property, where she still lives. In return, Woodsbey's lawyer is expected to drop an appeal that had the potential to tie up Deutsche Bank in federal court for years as the two sides debated issues that are central to the nation's subprime mortgage crisis. Woodsbey's suit also coincided with the FBI's investigation of allegations of widespread mortgage fraud in the city of Erie -- a probe that has resulted in charges against two Erie developers.

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• Based on prior court filings, [...], Woodsbey's lawyer, Margaret Schuetz, of the nonprofit Community Justice Project in Pittsburgh, had sued Deutsche Bank and others to try to save Woodsbey's house from foreclosure and to make sure she got money to make repairs. [...] The FBI has included Woodsbey's house on a list of 197 properties under review in its local mortgage-fraud probe.

For more, see Fraud suit nears end (Tentative deal with Deutsche Bank likely to stop foreclosure against eastside woman).

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Erie Feds Close To Bagging Third Plea In Local Mortgage Fraud Scam Involving Almost 200 Properties

In Erie, Pennsylvania, the Erie Times News reports:

• A third defendant in the federal probe of a widespread local mortgage-fraud scheme appears ready to enter a guilty plea. Gregory M. Finney originally entered a plea of not guilty in the case. But Finney’s lawyer, Daniel Brabender, said last week that Finney will likely change that plea in the next few weeks, in large part because of a prior conviction for delivery of cocaine. [...] Finney, who was indicted by a federal grand jury on Feb. 12, was president of A&M Homes, a now-defunct home-redevelopment business. [...] Brabender, who said he and Finney have discussed a plea change, said that if Finney were convicted in the mortgage fraud case, his prior cocaine conviction could weigh heavily against him at sentencing under federal guidelines.

For more, see:

• New fraud plea likely (Defendant expected to plead guilty in mortgage probe),
• House draws complaint.

Go here for other posts related to the Erie, Pa. FBI mortgage fraud probe. Robert Dodsworth

Erie, Pa. Federal Mortgage Fraud Probe Yields More Charges; New Arrest

In Erie, Pennsylvania, the Erie Times News reports:

• A second key figure in the ongoing federal investigation into suspected mortgage fraud in the city of Erie looks to be poised to plead guilty to fraud and money-laundering charges. The U.S. Attorney's Office in Erie on Thursday filed criminal charges against Frank Kartesz II. Kartesz, 39, of Harborcreek Township, is accused of one count each of mail fraud and criminal conspiracy to commit mail fraud, wire fraud and bank fraud. The government alleges Kartesz was part of a scheme in which he and others bought run-down houses and sold them at artificially inflated prices. Most of the buyers were low-income people who knew little about the home-buying process.

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• Kartesz is the second person charged in the federal probe so far. His business partner in K&D Enterprises, Robert L. Dodsworth, pleaded guilty to fraud charges in November. [...] Most of the sales under investigation occurred in low-income Erie neighborhoods, and most of the financing was arranged through subprime mortgages.

For more, see New arrest in fraud case.

Go here for earlier posts on this Federal mortgage fraud probe.