Tagged: mortgage fraud

Link Roundup

Lots of good stuff in the news this week!

In the Baltimore Sun, Luke Broadwater reports the Housing Authority of Baltimore City has disbanded and laid off its Housing Security Unit.  These were the folks responsible for “investigating illegal occupants, nuisance activity, unsecured vacants and vandalism”, according to the article.

Developer Mark Manzo wanted to demolish part of a historic 19th Century church to make way for a parking lot for his new townhouses in Butcher’s Hill.  According to this Baltimore Brew article, the Commission for Historical and Architectural Preservation (CHAP) denied the petition, as several neighbors, and District 13 Councilman Warren Branch protested the effort.  One neighbor called the townhouses “boring”.

Vacants are everywhere, including Japan, says Business Insider.

Since you can’t talk about vacants without mentioning Detroit… S&P has downgraded Wayne County’s credit rating to two steps above “junk”, says Bloomberg.  That’s gotta hurt.

You can’t really talk about vacants without mentioning Baltimore or HUD, either — and the Baltimore Sun reports that HUD is shrinking its Baltimore office staff by one-third, as part of a consolidation effort.

In the UK, investors and landlords are being targeted by mortgage scammers.

Speaking of the UK, Britain’s biggest mortgage fraudster was given an extra four years in prison for conspiring to defraud two banks of £61 million, according to the London Evening Standard.  One of his previous scams was selling bogus manorial titles to Americans.

Dozens of homes in New Orleans were moved and then left to deteriorate, at taxpayer expense, according to WWLVT Channel 4.  The nonprofit in charge of renovating the homes, Builders of Hope, is no longer involved in the project.  If you recall, the Baltimore Sun reported back in 2012, the same nonprofit was supposed to partner with Ray Lewis to renovate 500 homes in Baltimore, and that seems to have gone nowhere.

You know life has taken a bad turn when the feds are busting down the door, looking for your 40+ year old son who’s living in your basement.  Van Smith from the City Paper reports on former deputy mayor and state delegate Salima Siler Marriott’s latest woes.

And speaking of the feds — Philadelphia’s notorious “Slumlord Millionaire” Robert Coyle is on his way to the pokey after defrauding a couple of banks.  Nevermind the fact that he’s allegedly swindled people in his “rent to own” schemes, and forced citizens in the Kensington neighborhood of Philly to live next to his blighted nasty homes…oh, and how about the fact that he treated his tenants worse than animals and forced some of them to live without plumbing or heat?  But hey — he defrauded a couple of banks, so off to the clink he goes!

Because sometimes I like to save the best for last…

The man who raped a 13 year old girl in a vacant home (owned at the time by disbarred attorney John Reiff) has been sentenced to four life sentences.  Count ‘em — 1-2-3-4.  I would say justice has been served quite nicely — I hope he also has to pay for the counseling the survivor will need to be able to move past such a horror.

 

Link Roundup

If you live in Baltimore City, you won’t want to miss this important meeting regarding the second round of proposed irresponsible cuts to the fire department.  Your home and family could be at risk!

Yet another mortgage fraudster who operated in a low-income part of Philly has been caught and charged with fraud.  Slumlords and scam artists think if they prey on people in low-income areas they won’t get caught — WRONG!

Speaking of mortgage fraud — a Baltimore man won’t be tasting freedom for a while after scamming several lenders out of over $1 million for his “shabby” houses.

A Clinton, Maryland woman has been found guilty of mortgage fraud.  Despite receiving income from the District of Columbia Housing Authority (Section 8 rent payments), she allowed the mortgages on all of her properties to go into default and pocketed the money.

Congrats to Poppleton residents for rallying around a neighborhood park, saving it from a stalled City development plan!

Henrico (Richmond, VA area) neighbors were up in arms over two vacant properties managed by an out of state firm — Channel 8 news investigated and got results.

Hamilton residents — you’re getting a new Royal Farms whether you want it or not.  [I have to say, I agree with “HS” who left the comment “That’s the problem with one party politics–they don’t even have to pretend that they work for you.”]

Money-laundering charges were suddenly dropped against the owner of multiple blighted properties in Baltimore, Stewart Sachs.

 

 

New Information for “Residential Relief Foundation” Scam Victims

Read more on the Residential Relief Foundation and its mortgage scams here and here.

The FTC has announced that it will be distributing over $1 million to homeowners who were scammed by the Residential Relief Foundation’s mortgage relief scams.  Unfortunately, due to the large number of people who were swindled, each victim will receive a grand total of $62.50.

For more information, please read this press release from the FTC.

Link Roundup

ABC 2 News reports a vacant caught fire and burned in SW Baltimore — according to state and city tax records, the address in question doesn’t exist.

Harriet M Taylor of Ellicott City was sentenced to two years in prison and five years supervised release for her role in a mortgage fraud scheme.

Steve Kilar from the Baltimore Sun listed all of the housing-related bills before the Maryland Legislature so far — a few look good, and a few…not so much.

The City plans to sell off the “Superblock” properties at a fraction of their actual worth, says Baltimore Brew.

Interesting discussion about the Housing Trust Fund in the New York Times — should the mortgage-interest deduction turn into a tax credit for middle- and low-income homeowners?

Five people from Maryland and one from Virginia were indicted for conspiracy in a $4.5 million mortgage fraud scheme.

Detroit revealed its 50-year redevelopment plan.  Great planning ideas, but sad to think that some of the folks who developed those ideas will never live to see them carried out.  Should cities create plans that far ahead in the future?

Last Link Roundup of 2012!

A recap of all the newsworthy links in 2012.

January

Early in 2012, Mayor Stephanie Rawlings-Blake was grilled by the MD Legislature about the status of the city’s lead paint judgements.  The city was refusing to pay, saying the judgement would bankrupt the city — a shame they didn’t think about that before allowing children to live in lead paint-filled homes.

A Federal judge sided with the City of Chicago in its fight to hold banks accountable for maintaining and securing vacant homes.

Business Insider had this to say about Baltimore’s neighborhoods — apparently some are just not worth saving.  Is your neighborhood worth more to you than it is to your elected officials?

February

Maryland property managers got their knickers in a bunch over being asked to pay what amounts to $4 a month for lead paint insurance.  Still seems cheaper than a multimillion dollar lawsuit.

March

Lots of articles have been written about squatters and takeovers of foreclosed and abandoned homes.  This one from the Chicago Tribune, wrtten in March, is particularly good.

Also in March, WBAL suggested development along Baltimore’s waterfront could suffer due to a loss of tax breaks for developers.  What were they thinking??

In Chicago, a young girl was raped at gunpoint between two vacant homes in the West Englewood neighborhood.  Neighbors say the vacants are more than just a threat to property values.

Instead of paying lead paint lawsuit judgments, the city’s Housing Authority was paying for take-home cars for its employees, according to WBAL’s Jayne Miller.

Metro Dream Homes owner and founder Andrew Hamilton Williams, Jr. was sentenced for his role in a mortgage fraud scheme that cost numerous people their homes, and bilked them out of $78 million.

Philadelphia rejoiced upon hearing that Robert Coyle, the “Millionaire Slumlord” was charged with defrauding banks of $10 million.

I can’t tell you how many emails I’ve gotten in the past year from people who have major problems with their “rehabbed” homes, due to the fact that the “contractors” never bothered to get permits.  Here’s a story from the Baltimore Sun about one such homeowner (he’s also my neighbor, and a stand-up guy.)

April

Another article on rehabs without permits appeared in the Baltimore Sun in April.  This time, the owner was threatened with jail time.  I guess since it happened in Canton, the city decided to get tough.

The Detroit Free Press did an excellent series on keeping schoolchildren safe on their route to school — something most people take for granted.  Unfortunately, in some major cities — kids have an unsafe walk, passing vacant homes that are a magnet for criminal activity.

Travers and Tremayne Johnson, two brothers who were accused of setting a dog on fire, were found not guilty by a Baltimore jury.

BCFD wasn’t meeting NFPA standards for response times, according to an article by Baltimore Brew — yet the mayor and Chief Clack continued with their plans to close three Baltimore fire companies.

Detroit experienced a rash of arsons back in April — 16 fires in all, on the city’s east side.

Baltimore experienced a few vacant fires in April, too.  Most notably the fire on Yale Avenue in the city’s Irvington neighborhood.

According to a Baltimore Sun article, Builders of Hope, a North Carolina-based nonprofit chosen by Ray Lewis, was supposed to be renovating hundreds of homes in Baltimore City, near Johns Hopkins University in East Baltimore. Since then, we’ve heard nothing about the project — or the organization, except news of their ongoing dispute with the City of New Orleans and two contractors, allegedly for nonpayment of invoices.

April and May brought the mayor’s proposed cuts to the fire department — including the removal of truck and engine companies that serve our city’s poorest neighborhoods.  Thankfully, one truck company was spared the axe.  Two were not so lucky.

May

Speaking of the fire department, May saw quite a few arson fires — including more than 12 in Youngstown, OH.

Firefighters in Huntington, WV let a vacant home burn after being called to the same address multiple times.

And a fire in the 1100 block of Barclay Street in Baltimore may have been arson, according to this Baltimore Sun article.

June

And in the “It’s not just you, Baltimore” category:  In June, DC City Council Chairman Kwame R. Brown was charged with mortgage fraud.

Also in June, Florida topped the list of states with the highest incidents of mortgage fraud and an Ohio State trooper was sentenced to 50 months in prison for fraud.

July

In July, the head of Baltimore’s housing authority continued to justify the agency’s refusal to pay court-ordered lead paint judgements.  While Paul Graziano was busy refusing to pay these judgements, a DC man was scamming the Housing Authority of almost $1.4 million.

American Banker discussed the pros and cons of using eminent domain as a way for municipalities to get vacant homes out of the hands of banks.

Two big storms hit Baltimore City, and the mayor and fire chief still wanted to cut our fire companies.  This didn’t sit will with the two IAFF Local presidents.

BCFD Chief Jim Clack received a hostile reception from IAFF members at July’s Firehouse Expo.

Habitat for Humanity and the Home Depot Foundation expanded a home renovation program for veterans.

August

WBAL asked if Baltimore City would pay for residents’ flooded basements, or will these residents once again get stuck with the city’s tab?

After being called to aid an injured man, a Baltimore City EMT and the patient fell through a hole in the front porch of a vacant home, into the basement.

Also in August, the Hip Hop Chicken on Hillen Road, a place where some swear you could get the best chicken ever — caught fire.

A fair housing case that dates back to 1995 was finally settled, giving some Baltimore families the right to move into safer housing.

September

Lots of housing-related crime happened in September. Kenneth Koehler of Baltimore pleaded guilty to wire fraud, in a scheme that left mortgage lenders holding the bag for over $1 million in debt.  Six Upper Fells Point homes went into foreclosure as a result of this scam.

Lorain, Ohio used an interesting method to move vacant homes to demolition — search warrants.

Los Angeles City attorney called US Bank and Deutsche Bank “slumlords”, accused the banks of neglecting foreclosed properties.

Detroit Crime Commission tackled crime by going after large-scale slumlords, vacants, and arson.

An Ellicott City woman pleaded guilty to stealing $1.5 million in a mortgage fraud scheme.

Also in September, a series of arson fires did some major widespread damage to Detroit’s east side.

October

I was in Baltimore Magazine in October.  Spending four days or more with a journalist is like therapy (only cheaper and more fun). I highly recommend it.  I also did a Q&A with Technically Baltimore — they appeal to my data nerd side, and who doesn’t like talking about data?

Edward Ericson, Jr. from the Baltimore City Paper wrote about the debacle with the Prisoner’s Aid Association-owned properties that have been condemned, foreclosed on, or are in foreclosure.  It’s definitely worth reading both articles:  First Article  Second Article.

The Baltimore Sun reported that former District 2 councilman Nick D’Adamo was given a cushy job as a “Special Assistant” to BCFD Chief James Clack.  Hey…wasn’t Squad 11 in D’Adamo’s former district?

Speaking of dumb moves by government — Wayne County, MI (yeah that’s Detroit) is apparently got rid of its ability to investigate and prosecute arson cases.  In Detroit.  A city with probably more arson than any other city in the world.

Just as BCFD Chief Clack finished crowing about his impressive fire statistics in front of the City Council — five people, a grandmother and four children, were killed in a house fire. As much as people like to bandy about impressive stats and data — actions still speak louder than words.

November

ProPublica published their “Living Apart” series in November.  The series is about fair housing in the US, and how things went terribly wrong, despite the best intentions of lawmakers on both sides of the fence.  You can read Part 1 here, and Part 2 here.

Baltimore City demolished a block of vacants in West Baltimore — I hope it turns into something that benefits residents.   You can see how the block looked before demolition here.

Baltimore Brew was quick to report on the community impact grant money our city gave the casino developers — money that was earmarked for poor communities like Pigtown, Sharp-Leadenhall, and Westport.

In Milwaukee, WI, foreclosed and abandoned homes continued to be a problem — yet Wisconsin’s governor Scott Walker used settlement money received from a federal mortgage abuse lawsuit to balance the budget.

Want to buy that vacant foreclosure next door before it becomes a neighborhood nuisance?  That may be harder than you think.

Louisville, KY created a registry of vacant homes, and a plan for what to do when owners don’t maintain them.

Foreclosed home caretakers sued a Bank of America affiliate in California, claiming the company cheated them out of overtime and wages.

December

As you can imagine, folks in Cleveland are tired of slumlords, too.  And they had some words for an absentee slumlord who lives in Florida.

In New York, an attorney was convicted on multiple counts of mortgage fraud, but the NY Attorney General lost a few counts, despite testimony from the attorney’s employees.

An office building in downtown Baltimore will be converted to apartments — however, it looks like no affordable units are planned.

ABC2 News reports that an Owings Mills Man will be spending the next 25 years in prison for his role in a mortgage fraud scheme.

Even more apartments coming to downtown Baltimore, according to Steve Kilar at the Baltimore Sun.  It’s unclear whether any of the buildings will include workforce housing.

A rather bizarre interview with the CEO of Wells Fargo about the economy, mortgage fraud, and board conflicts.

DSNews and CoreLogic report that mortgage fraud is on the rise again, with increased short sale fraud expected.

Howard Park is still waiting for their ShopRite Supermarket — what’s the holdup?

Interesting to see that Johns Hopkins is pledging millions of dollars to fix up the neighborhoods surrounding its Homewood campus — what about all of the lead paint-filled blighted homes owned by the Bloomberg School of Public Health near Johns Hopkins Hospital in East Baltimore?

Speaking of mortgage fraud, three people were indicted for their role in a fraud scheme that concentrated around houses in the Reservoir Hill neighborhood.

PG County has seen its fair share of mortgage fraud, too.

Brighter days ahead for one Detroit neighborhood — thanks to the residents who live there.

While steel shutters might be great for keeping vagrants out of vacants, they pose a challenge to firefighters and might result in greater property loss, according to Chicago Fire Department Chief of Special Operations Michael Fox.

TODAY, December 31, is the last day you can file your Maryland Homestead Tax Credit application.  If your application is not postmarked by today, you will not receive the credit — file now!

Maryland home values fell 7% in 2012, according to this article in the Baltimore Sun.

Link Roundup

As you can imagine, folks in Cleveland are tired of slumlords, too.  And they had some words for an absentee slumlord who lives in Florida.

In New York, an attorney was convicted on multiple counts of mortgage fraud, but the NY Attorney General lost a few counts, despite testimony from the attorney’s employees.

An office building in downtown Baltimore will be converted to apartments — however, it looks like no affordable units are planned.

ABC2 News reports that an Owings Mills Man will be spending the next 25 years in prison for his role in a mortgage fraud scheme.

Even more apartments coming to downtown Baltimore, according to Steve Kilar at the Baltimore Sun.  It’s unclear whether any of the buildings will include workforce housing.

A rather bizarre interview with the CEO of Wells Fargo about the economy, mortgage fraud, and board conflicts.

DSNews and CoreLogic report that mortgage fraud is on the rise again, with increased short sale fraud expected.

Howard Park is still waiting for their ShopRite Supermarket — what’s the holdup?

Interesting to see that Johns Hopkins is pledging millions of dollars to fix up the neighborhoods surrounding its Homewood campus — what about all of the lead paint-filled blighted homes owned by the Bloomberg School of Public Health near Johns Hopkins Hospital in East Baltimore?

 

 

 

Link Roundup

“Stealing Trust”, an award-winning film by John Spillane, will be shown in Frederick on Wednesday, at 7 PM.  The film documents victims of mortgage fraud across Maryland.

Lorain, Ohio is using an interesting method to move vacant homes to demolition — search warrants.

Kenneth Koehler of Baltimore has pleaded guilty to wire fraud, in a scheme that left mortgage lenders holding the bag for over $1 million in debt.  Six Upper Fells Point homes are now in foreclosure as a result of this scam.

Los Angeles City attorney calls US Bank and Deutsche Bank “slumlords”, accuses banks of neglecting foreclosed properties.

Detroit Crime Commission tackles crime by going after large-scale slumlords, vacants, and arson.

An Ellicott City woman pleaded guilty to stealing $1.5 million in a mortgage fraud scheme.

More mortgage fraud in Maryland — an Owings Mills man was found guilty, faces up to 90 months in prison.