Former Sun Trust Loan Officer Pleads Guilty to Mortgage Fraud Scheme

U.S. Attorney’s Office 
Eastern District of Virginia 
ALEXANDRIA, VA  -  Javier Siveroni, 48, of Springfield, Va., pleaded guilty today to using his position as a loan officer to help carry out a multi-million-dollar mortgage fraud scheme involving more than 15 homes in Northern Virginia.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by United States District Judge Liam O’Grady.

Siveroni pleaded guilty to one count of an indictment charging him with conspiracy to commit wire fraud. Siveroni faces a maximum penalty of 20 years in prison when he is sentenced on Nov. 4, 2011.

According to court documents, Siveroni, a former loan officer at the Falls Church branch of SunTrust Mortgage, prepared and submitted false, fraudulent, and misleading mortgage loan applications for unqualified buyers—individuals who lacked the finances, credit rating, or legal status to obtain a certain loan amount. The fraudulent mortgage loan applications contained false information regarding applicants’ employment, income, assets, immigration status, and intent to live in the property as a primary residence. As part of the fraud scheme, Siveroni created, and taught his co-conspirators how to create fake documents in order to corroborate false information contained in the loan applications.

The total amount of mortgage loans approved through the conspiracy exceeded $6.5 million. The total loss attributable directly to Siveroni is over $2.5 million.

In related matters, three loan officers have pled guilty to their roles in the alleged conspiracy: Preston Cherouny, 45, of Washington, D.C.; John Leone, 44, of Vienna, Va.; Alejandro Alquinta, 35, of Springfield, Va. Maria Teresa Sanchez, 44, of Burke, Va., and Yolanda Salazar Camacho, 35, of Alexandria, Va., also pled guilty for their roles as loan officer assistants in the conspiracy.

This ongoing investigation was conducted by the FBI’s Washington Field Office. Assistant United States Attorney Uzo Asonye prosecuted the case on behalf of the United States.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.

You should visit Peak Home Loans.  They offer 2.625% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100K loan is only $402/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!

Lenders Committing Mortgage Fraud Against Borrowers

Can a Mortgage Broker, Loan Officer, Bank, Mortgage Company, or Lender actually commit mortgage fraud, or are they immune to the same consequences than if a borrower committed the same offense?

After my schooling today by a former Sarasota, FL judge, I must answer NO THEY CANNOT COMMIT MORTGAGE FRAUD AND YES THEY ARE IMMUNE.  Accordingly, once the borrower receives the proceeds of a mortgage loan at settlement, the broker, loan officer, lender, bank, mortgage company, etc. (henceforth, Lender) is absolved of all culpability in regards to the preparation of the uniform residential loan application (1003.)  Why?  Well, after all, the borrower received the money they asked for and that's the end of that.  This is what I was told from a former judge's own mouth.  Interesting...  Got it so far?  Good...

However, after further consideration of this logic, I can only surmise due to common sense and reasoning that fraud by the Lender could occur;  but, only if it was discovered between the time of the loan application and the time of settlement.  In this instance, the fraud would occur;  but, would have to be discovered before any monies have been distributed to the borrower.  You will see later that this can not happen.  To sum things up, Lender fraud would occur at the time of the 1003 completion, but would be absolved at settlement when the funds are disbursed.  Believe it or not, that's true, according to my first-hand information.  How can we equate this to a narcotics dealer?  Would the dealer only be guilty while transporting the narcotics?  After delivery, would the dealer then become innocent?  All things being equal;  in both cases, after some sort of monetary conveyance is carried out, is the guilty party all of a sudden innocent?  Was the Lender and/or the narcotics dealer guilty or innocent?  Temporarily guilty?  Do we treat them the same?   So, now what happens?  We know what would happen to the dealer.  But, the Lender gets away with it scott-free?

BUT THINK ABOUT IT, the borrower does not complete the loan application, the Lender does.  So how would the borrower be aware their loan application was compromised? or forged? or the fact that they were getting a conventional loan; when, in fact, they were getting a non-conventional loan? or that they even signed the application?  Answer… they would not.  That’s right, they would not know until some time in the future if and when the loan application was called into question, i.e. requested during discovery.  At this point, the borrower would have time to uncover any discrepancies.  And it is like pulling teeth trying to drag a 1003 from a Lender.  Walk into your bank and ask for a copy of your loan application.   Good luck.  It won't happen.  It can take years even with a court order.  Ask yourself why?

The Double Standard:  If a borrower commits mortgage fraud, i.e. falsifies their income on the 1003, they are subject to severe criminal as well as civil actions, see FBI standard below.  However, if the Lender commits mortgage fraud, i.e. alters the borrowers income on the 1003, are they totally and absolutely immune to repercussions simply because they transferred funds to the borrower?   It seems that way.

Read This***  FBI WARNING: "Mortgage Fraud is investigated by the Federal Bureau of Investigation and is punishable by up to 30 years in federal prison or $1,000,000 fine, or both.  It is illegal for a person to make any false statement regarding income, assets, debt, or matters of identification, or to willfully overvalue any land or property, in a loan and credit application for the purpose of influencing in any way the action of a financial institution."  What this tells me is that mortgage fraud is a more astringent crime than even murder.  How many murderers get 30 years, or a million dollar fine?  The average sentence in the US for 1st degree murder is 25 years in prison and a $0 (zero) fine.  DOES THIS GO BOTH WAYS?  Is the Lender a person?  What do you think?

Is this a double-standard?  I don't know, is it?  It's my opinion that anyone with a double-digit IQ would clearly see the obvious.  I need not say more.  Do Lenders think they are God?

In my final conclusion, in spite of my schooling today by a not-to-be-named former Sarasota, FL judge, I propose that mortgage fraud CAN BE AND IS being committed by Lenders and should be punished according to FBI standards.  Should compensation be granted to the borrower victim???

*** http://www.mortgagebankers.org/files/FBIMortgageFraudWarningFinal.pdf  (please copy and paste into your browser.)

You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.50% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100k loan is only $397/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!

Mortgage Fraud & Predatory Lending

Mortgage fraud is not to be confused with predatory mortgage lending, which occurs when a consumer is misled or deceived by agents of the lender. However, predatory lending practices often co-exist with mortgage fraud.

Falsification of loan applications without the knowledge of the borrower: The loan applications are falsified without the knowledge of the borrower when the borrower actually will not qualify for a loan for various reasons. for example parties involved will make a commission out of the transaction. The business happens only if the loan application is falsified. For example borrower applies for a loan stating monthly income of $2000 (but with this income $2000 per month the borrower will not qualify), however the broker or loan officer falsified the income documents and loan application that borrower earns a monthly income of $15,000. The loan gets approved the broker/loan officer etc. gets their commission. But the borrower struggles to repay the loan and defaults the loan eventually.

Other background Mortgage fraud may be perpetrated by one or more participants in a loan transaction, including the borrower; a loan officer who originates the mortgage; a real estate agent, appraiser, a title or escrow representative or attorney; or by multiple parties as in the example of the fraud ring described above. Dishonest and un-reputable stakeholders may encourage and assist borrowers in committing fraud because most participants are typically compensated only when a transaction closes.

You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.50% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100k loan is only $397/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!

Report Mortgage Fraud In Florida

What is the Attorney General of Florida doing to protect homeowners?

Attorney General Bondi is committed to investigating any business that deceives or defrauds a consumer in the mortgage or foreclosure process.

The Attorney General's Office has numerous investigations and has filed lawsuits against such businesses, some of which were filed under the Foreclosure Rescue Fraud Prevention Act. In addition, the Attorney General’s Office has reviewed hundreds of foreclosure rescue businesses for fraudulent or deceptive business practices.

Many unscrupulous companies and individuals are taking advantage of the desperate situation our state’s homeowners are facing. These companies promise they can help save homes, then take outrageous up-front fees from our homeowners facing foreclosure. The companies often keep the fees, take no additional action, and let the homes fall into foreclosure.

Consumer Tips:

• Homeowners should NEVER pay any up-front fees and should avoid any high-pressure sales tactics. Fees may only be collected after services are completed.
• Homeowners should first try talking to their lenders or a lawyer before contracting with any third-party company for rescue or modification services.
• If a homeowner believes he or she has been taken advantage of by a disreputable company, he or she should call the Florida Attorney General’s fraud hotline at 1-866-9-NO-SCAM or file a complaint online at myfloridalegal.com, or click http://myfloridalegal.com/Contact.nsf/Contact

You should visit Peak Home Loans for refinance mortgage help and advice.  They offer 2.50% home loan mortgage refinancing, home purchasing, home equity loans, debt consolidation loans and more. A $100k loan is only $397/mo. 4 in 5 will qualify.  Rates are at an all-time low, apply today!