I submitted a total of three(3) hardship packets, and I was rejected by National City Mortgage for a partial Claim, and a forbearance type of payment arrangements.
by Anonymous From Southaven.
by PT From Longmont, CO on June 05, 2009
This company convinced me to have my Chapter 13 bankruptcy dismissed so that they could re-negotiate my mortgage and then foreclosed us 9 days later. SIMPLY UNBELIEVABLE. Now my wife and 2 kids are looking for an apartment!!
lapse in my coverage... insurance bill was sent to the wrong address. I was in contact with NCMC during entire process. At no point was I informed they would charge me a "fee" of more than the actual policy until they started pulling it from my account. bad business practices. Do not deal with them.
I get the "poor service" comments. We are actually in good standing with NCM. When I called to do a re-fi with cash out, I got a GFE immediately, encouraging me to lock ASAP. However, when I tried to move forward, I did not hear back. Left two vm's and sent emails. Finally got a brief email explaining he was busy but would get back with me the next business afternoon. Next business afternoon came and went - late last night received another email telling me the re-fi would move forward ASAP. Asked for an updated GFE and have not heard back. I am so glad I found this website. After reading comments, we are going with another lender. NCM is losing our business and we have excellent dredit (by the grace of God) and an excellent payment history. The lack of communication is not acceptable - and I certainly don't want to risk the "cash out" payment to be held by NCM for 60m days! Thanks for all of your comments. Hopefully NCM won't read this and figure out who I am - sounds like they may lie about our payment history to discourage the next lender!
Thursday, September 30, 2010
Wednesday, September 29, 2010
National City Mortgage has not been very good to deal with
National City Mortgage has not been very good to deal with. They will not take partial payments. Getting a person, not a machine, is almost impossibe. They kept my partial payment for two months before they returned it to me with a letter from their lawyers saying they were foreclosing on my home. I filed out a workout (hardship) packet and was contacted by their lawyers who basically told me they would would consider a repayment plan but they would need a down payment of at least 3,000-5,000 dollars to do so. If they had read my hardship packet, they could see I didn't have money for a down payment. Dealing with their lawyers is worse than dealing with them.
I'm currently working on my 3rd Hardship Packet with NCM. I've been denied twice advising the investor doesn't agree with modifying the terms. I've only been offered a repayment plan which would result in a higher payment of over $4k. I haven't made a payment in 11 months. I was served with the NOD in 1/09 with no sale date yet. I believe NCM hasn't received it's share of bail out money and is holding it's customers hostage until Washington pays out more.
National City is by far the worst company of any kind I have ever dealt with. They claim to be willing to help you but in reality they do not care. They wont take partial payments and the workout package is a joke. After speaking with them and giving them all the info they said I was pre approved for a loan modification as I showed a surplus of income. I called to find the status weekly and they said there was no update and it usually takes 2-4 weeks to complete but not to worry as a foreclosure sale date was not set yet. I called again after 5 weeks and got the same answer of still processing. Then, 2 days later, I get the letter in the mail saying that the loan mod was denied due to a deficit in income and my loan has been referred to an attorney for foreclosure and they will not talk to me about it anymore. I have to go thru their lawyer to get any info and that too is a joke. I have called their lawyer numerous time and left meny detailed messages with no return call. I am trying to save my house but NCM or their lawyers dont care. I really dont understand this. I would think they would rather get money from me than have to foreclose and then try to sell the house in a terrible market in Florida. They will lose money by foreclosing and that just doesnt make sense to me. My wife and I are devastated and no one cares. I would suggest that anyone considering NCM find another option if at all possible. These people plain and simply DO NOT CARE if you lose your home or not. Avoid this company at ALL costs.
I'm currently working on my 3rd Hardship Packet with NCM. I've been denied twice advising the investor doesn't agree with modifying the terms. I've only been offered a repayment plan which would result in a higher payment of over $4k. I haven't made a payment in 11 months. I was served with the NOD in 1/09 with no sale date yet. I believe NCM hasn't received it's share of bail out money and is holding it's customers hostage until Washington pays out more.
National City is by far the worst company of any kind I have ever dealt with. They claim to be willing to help you but in reality they do not care. They wont take partial payments and the workout package is a joke. After speaking with them and giving them all the info they said I was pre approved for a loan modification as I showed a surplus of income. I called to find the status weekly and they said there was no update and it usually takes 2-4 weeks to complete but not to worry as a foreclosure sale date was not set yet. I called again after 5 weeks and got the same answer of still processing. Then, 2 days later, I get the letter in the mail saying that the loan mod was denied due to a deficit in income and my loan has been referred to an attorney for foreclosure and they will not talk to me about it anymore. I have to go thru their lawyer to get any info and that too is a joke. I have called their lawyer numerous time and left meny detailed messages with no return call. I am trying to save my house but NCM or their lawyers dont care. I really dont understand this. I would think they would rather get money from me than have to foreclose and then try to sell the house in a terrible market in Florida. They will lose money by foreclosing and that just doesnt make sense to me. My wife and I are devastated and no one cares. I would suggest that anyone considering NCM find another option if at all possible. These people plain and simply DO NOT CARE if you lose your home or not. Avoid this company at ALL costs.
Tuesday, September 28, 2010
Mortgage Market
This company needs to stand up and be accountable for the way they conduct business in the mortgage market. The loan I am reporting about is a home loan in which the only borrower is my husband. In December 2007 I contacted NCM to request a payment booklet on the loan since the December payment used the last coupon and the escrow amount would more than likely increase (property taxes & insurance premiums). I did not inquire about any information on the loan itself just simply requested a new payment booklet for the upcoming new year and I was rudely informed that they could not speak with me since my name was not listed on the loan. I explained to this rude customer service representative that I was not inquiring about the loan just requesting a payment booklet and could she please just make a note to get the booklet ordered for us, again she replied that she could not speak with me in reguards to this loan not even to request a new payment booklet. Jan 2008 still have no payment book so again I called and was giving the same response. Feb called again and was told the same thing. So I had been making the payments without a coupon and at the old payment amount. March same deal they could not speak with me. So I did not make a march payment in hopes they would contact my husband in reference to his missed payment and they did so only they contacted him on his company work phone and left an urgent message for him to return their call which he did when he returned home from work that same day, and during this call he requested a new payment booklet and had explained they we had been requesting this booklet since december 2007 and she indicated that there was no record of this request, he gave her verbal permission to speak with me and I gave her the exact dates and times in which I called and whom I had spoken with and she indicated they because I was not listed on the account that no notation would be made of the calls or the request but that she would put the order for a new payment booklet in immediately. So I in turn went a made another payment in March, April and May without coupons since the payment booklet never was received until June and it indicated that the payment has been reduced by 87 cents a month which was no big deal until the following days mail ran and I received a notice from the homeowners insurance company which we have had for the last 12 years indicating our home was no loger insured due to non- payment of premium, which I could not understand since we had an escrow account and this money had been collected the previous year for the payment of this expense. I contacted the insurance company to be informed they had infact sent 3 different notices to NCM on this premium due and they received no payment and no response. Calls to NCM were not returned so again I did not make a June, July, August payment hoping they would again call us since they would not return our call and we did not receive a call but we were tracked down by a process server at a property which my husband is the beneficiary to in another city than were we live to be served with foreclosure papers and here is the clincher I was also served with papers on this mortgage which my name does not even appear and it is my former name prior to the marriage of my husband which I have not used for over 19 years. We turned the documents over to our Attorney who contacted the Attorney representing NCM and he had no type of loan information and it took him until October 2008 to receive the documentation we requested from the bank and we were shocked to also receive a new payment booklet from NCM in October while this was already in court on foreclosure with payment amounts increasing from 720.90 a month to 795.00 a month so with this we are informed that NCM Attorney does not know why a new payment booklet was issued on a foreclosure but that the increase in payment was due to mortgage insurance premium and he forwarded a copy of the loan history and I would discover that they allowed the premium on the homeowners policy to lapse for failure to pay the $456 premium but a month later had picked up a homeowners policy from their company with a premium of $804 and that was why the increase in payments but took them 3 months to notify us. In October our Attorney had us go to the bank and attempt to make the missed monthly payments from June to October including late fees but on separate checks for each month which I did and even paid the November payment early and they did except all the payments no questions ask. The payments cleared my bank also. Both Attorney's were amazed that the bank accepted the payments and they continued to workout the remaining issues. NCM is slow about providing documents needed to get this resolved and numerous request with the court for the hearing dates to be extended have been filed. In March 2009 we are informed that the payments we have made since october 2008 to Feb 2009 have been setting in a suspense account and never applied to the loan. NCM wants the payments paid at the payment booklet amount which was set in Oct and not the June rate and they will recalculate the payment amount when the case is settled and we pay the Attorney fees the incurred to file the foreclosure. They are also adding additonal late fees which they want paid. I understand the error on my part of not making the payments without a payment booklet but I also feel they NCM were in error of not getting a payment booklet out when the first request was made due to the fact they could not speak with me on the loan then they also should not have the power to file or list me on a foreclosure. And then the error of not using the escrow money in the manner it was being paid to be used for is outrageous and then to let our policy lapse and to pickup a policy for double the premium they should be prosecuted for fraud on this matter. This information was not giving to the Attorney filing the foreclosure by NCM but was issured to him from our Attorney. Now a new problem has come up I am waiting to file my income tax return because NCM has not issued us a 1098 mortgage interest statement for 2008 and when checking with the Attorneys we have been told we need to get that from NCM on our own. Which we have spoken with them and have been informed that the only interest applied to the account was from the payments made Jan to May 2008 and the remaining payments are still in the suspense account and no principle or interes will be applied to the loan until the etire case is completed. But we need to continue making the increased payments until this is refigured.
Monday, September 20, 2010
Robbery of Bank of the West Branch in Oklahoma City
OKLAHOMA CITY—James E. Finch, Special Agent in Charge of the Federal Bureau of Investigation in Oklahoma, announced the robbery of the Bank of the West, 1600 S.W. 89th Street, Oklahoma City, Oklahoma.
At approximately 9:22 this morning, an unknown male entered the bank and showed the teller a note demanding money. The note also indicated the unknown male had a firearm but one was not seen. The robber gathered the money and exited the bank traveling on foot in an unknown direction. No one was injured in today’s robbery.
The robber was described as a Native American or Hispanic male, 5’9” to 6’0” tall, approximately 200 to 220 pounds, black hair with gray in it gathered in a ponytail. The robber wore a red in color baseball-style cap, blue jeans, and a dark colored T-shirt.
The robbery is being investigated by the FBI and the Oklahoma City Police Department.
Anyone with information regarding this robbery should contact the FBI at (405) 290-7770 (24-hour number). You may remain anonymous.
Tribal Cigarette Wholesaler Pleads Guilty to Obstruction of Justice
New York Company Pays $1 Million for False Declarations in Smoke Shop Forfeiture Case
A Perrysburg, New York company pleaded guilty and was sentenced last week in U.S. District Court in Seattle New York
In the plea agreement, Native Wholesale Supply admits that it filed false information with the court in connection with a civil forfeiture action. The United States Arlington , Washington
Native Wholesale Supply is a corporation chartered under the laws of the Sac and Fox tribes of Oklahoma Seneca Nation Territory in upstate New York Washington
On March 16, 2009, three members of the Stilliguamish Tribe were sentenced to prison for their scheme to profit by selling contraband cigarettes without paying the applicable Washington State
Evidence gathered from the searches of Blue Stilly and various cigarette suppliers revealed that between March 2003, and May 2007, the Blue Stilly had ordered and illegally sold in excess of 1.8 million cartons of cigarettes and generated more than $55 million in revenues from the illegal sales of cigarettes. The four conspirators personally profited $15 million, which they used for their own benefit and did not pay any cigarette tax to the State of Washington
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Internal Revenue Service Criminal Investigations (IRS-CI), and the Washington State Liquor Control Board. The case was prosecuted by Assistant United States Attorneys Mary K. Dimke, J. Mark Parrent, and Richard E. Cohen.
ATF National Response Team Activated to Investigate Cheyenne Motel Fire
CHEYENNE, Wyo. — The National Response Team (NRT) from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) along with agents from the ATF Denver Field Division have been activated by request from the Cheyenne Fire and Police Departments to investigate a fire involving the Hitching Post Inn, 1700 W. Lincolnway Avenue, Cheyenne, Wyoming. The fire occurred on Sept. 15. The team is led by Denver Field Division (FD) Assistant Special Agent in Charge (SAC) Doug Dawson and Acting Team Supervisor Nicholas Leathers, Arson and Explosives Programs Division (AEPD). The NRT will conduct an assessment of the fire scene and formulate an investigative plan with state and local investigators.
Marvin Richardson, special agent in charge, ATF Denver Field Division, said the estimated loss of the structures is in excess of $2 million. This is the first deployment of the NRT to Wyoming
ATF’s NRT has brought definitive expertise and an array of state-of-the-art equipment to the investigation of major fire incidents since 1978. Since its inception, the NRT has partnered with federal, state and local investigators in meeting the challenges faced at these significant fire scenes. Investigators from the Cheyenne Fire Department, as well as the Cheyenne Police Department, will jointly investigate with the NRT. The NRT works alongside its partners in reconstructing the scene, identifying the origin of the fire, conducting interviews, and sifting through debris to obtain evidence related to the fire. This is the 26th NRT activation in fiscal year 2010.
The NRT is organized into three geographic regions covering the United States United States
The responding NRT component typically has 13 to 18 members, including veteran special agents who have post blast and fire origin-and-cause expertise; forensic chemists; explosives enforcement officers; fire protection engineers; accelerant detection canines; explosives detection canines; intelligence support, computer forensic support and forensic audit support. Further complementing the team’s efforts are technical, legal and intelligence advisors. A fleet of fully equipped response vehicles strategically located throughout the United States
ATF is the federal agency with jurisdiction for investigating fires and crimes of arson. More information on ATF can be found at http://www.atf.gov/.
Sunday, September 19, 2010
Asset Forfeiture Auction Information, Updated September 17, 2010
A General List of Auctions in September 2010 - This link will take you to a non-government website with specific information on forfeited assets that are schedule for auction by Bid4Assets, an authorized contractor that auctions forfeited property for the U.S.
Minimum Bid: $42,900
Auction Dates: September 20, 2010 - September 22, 2010
Minimum Bid: $13,650
Auction Dates: September 20, 2010 - September 22, 2010
Candler, NC - .78 +/- Acres of Vacant Land
Minimum Bid: $5,000
Auction Dates: September 21, 2010 - September 23, 2010
Minimum Bid: $65,000
Auction Dates: September 21, 2010 - September 23, 2010
2000 Mercedes SL Class SL500
Minimum Bid: $7,050
Auction Dates: September 27, 2010 - September 29, 2010
2007 Buick Lucerne
Minimum Bid: $6,050
Auction Dates: September 27, 2010 - September 29, 2010
Minimum Bid: $126,750
Auction Dates: September 27, 2010 - September 29, 2010
2002 Infiniti Q-45
Minimum Bid: $5,650
Auction Dates: September 27, 2010 - September 29, 2010
Minimum Bid: $10,000
Auction Dates: September 28, 2010 - September 30, 2010
2003 BMW 745Li Sedan
Minimum Bid: $11,400
Auction Dates: September 28, 2010 - September 30, 2010
2009 Honda Pilot EX-L 4 Wheel Drive
Minimum Bid: $13,300
Auction Dates: September 28, 2010 - September 30, 2010
2006 Buick Lucerne
Minimum Bid: $6,025
Auction Dates: September 28, 2010 - September 30, 2010
Minimum Bid: $17,500
Auction Dates: October 04, 2010 - October 6, 2010
Minimum Bid: $10,000
Auction Dates: September 29, 2010 - September 30, 2010
Minimum Bid: $5,000
Auction Dates: October 04, 2010 - October 6, 2010
Minimum Bid: $26,650
Auction Dates: October 05, 2010 - October 7, 2010
Grover, NC - 116 Meadow Lark Lane
Minimum Bid: $1,500
Auction Dates: October 11, 2010 - October 13, 2010
Minimum Bid: $39,100
Auction Dates: October 11, 2010 - October 13, 2010
Minimum Bid: $10,000
Auction Dates: October 11, 2010 - October 13, 2010
Friday, September 17, 2010
OPERATION MONEY FISH: Florida Mafia Crew Dismantled
In Operation Money Fish, the Bonanno crew manufactured counterfeit payroll checks.
Members of the New York-based Bonanno crime family were making millions of dollars in South Florida cashing counterfeit checks, running telemarketing scams, defrauding Medicare, and stealing and selling people’s identities. But when they hooked up with a shady businessman to help them launder all that money, they got more than they bargained for.
The businessman with supposed connections in the banking industry was really one of our undercover agents, and he infiltrated the mafia crew for nearly a year. The evidence he gathered, along with intercepted phone calls and other electronic surveillance, was enough to put the entire 11-member operation out of business and behind bars.
“The mafia has always been in South Florida ,” our agent explained. “Each of New York
The Bonanno family’s criminal enterprise in South Florida —led by Tommy Fiore, the nephew of reputed Bonanno capo Gerry Chili—was wide ranging. In addition to the scams mentioned above, the crew also participated in arson, extortion, drug trafficking, and buying and selling stolen cigarettes, TVs, and other ill-gotten goods.
Operation Money Fish began in the summer of 2008, when our agent—who was known as Dave Stone—met Fiore. The Bonanno crew was manufacturing counterfeit payroll checks from large companies and needed help cashing them. They would copy a legitimate check, change the account numbers and the amount, and get Dave Stone to use his banking connections to turn the bad paper into cash. Dave and the crew then split the profits. (In reality, since we controlled the operation, no businesses were actually defrauded.)
The crew’s most lucrative scam, though, came from “boiler rooms”—bogus telemarketing operations that are rampant in South Florida . A dozen people working the phones out of someone’s condo can generate big profits. A popular pitch now involves the resale of time share properties. The criminal telemarketers claim they will help people resell their time share, or the fee charged will be refunded in full. Unsuspecting victims on the other end of the line—mostly older people unable to sell the properties on their own—send in the $5,000 or $6,000 fee, and that’s the last they ever see of their money. No services are rendered, and none were ever intended to be.
With the overwhelming evidence against them, the Bonanno crew all pled guilty to racketeering and other charges. “It was a good feeling to bring these guys down,” our undercover agent said. “They were getting away with a lot of crimes. There’s no telling how many people they had hurt or swindled before we got involved.”
But “Dave Stone” and his colleagues on the FBI’s organized crime squads understand that while you can disrupt the mafia’s activities in South Florida and elsewhere, it’s only a matter of time before the bosses in New York
“Absolutely they will try to start up again,” the agent said. “The Bonanno family in New York
Former Nexus Technologies Inc. Employees and Partner Sentenced for Roles in Foreign Bribery Scheme Involving Vietnamese Officials
Company Ordered to Turn Over Assets to Court, Cease All Operations
WASHINGTON—Three former employees and a partner of Nexus Technologies Inc. (Nexus), a Philadelphia-based company, were sentenced late yesterday for their roles in a conspiracy to bribe officials of the Vietnamese government in exchange for lucrative contracts to supply equipment and technology to Vietnamese government agencies, in violation of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania.
The president and owner of the company, Nam Nguyen, was sentenced to 16 months in prison and ordered to serve two years of supervised release following the prison term. His sibling, An Nguyen, was sentenced to nine months in prison, followed by three years of supervised release. His other sibling, Kim Nguyen, was sentenced to two years of probation and ordered to pay a $20,000 fine. Joseph Lukas, a former partner with Nexus, also was sentenced to two years of probation and ordered to pay a $1,000 fine.
Nexus; Nam Nguyen, 54, of Houston and Vietnam; Kim Nguyen, 41, of Philadelphia; and An Nguyen, 34, of Philadelphia, were charged in a superseding indictment on Oct. 30, 2009, with conspiracy, violations of the FCPA, violations of the Travel Act in connection with commercial bribes, and money laundering. Nexus pleaded guilty on March 16, 2010, to all the charges filed against the company in the superseding indictment, and agreed to cease operations and dissolve.
According to court documents, Nexus was a privately-owned export company that identified U.S. vendors for contracts opened for bid by the Vietnamese government and other companies operating in Vietnam U.S. U.S.
In connection with the guilty pleas, Nexus and the Nguyens admitted that from 1999 to 2008 they agreed to pay, and knowingly paid, bribes to Vietnamese government officials in exchange for contracts with the agencies and companies for which the bribe recipients worked. The bribes were falsely described as “commissions” in the company’s records. In pleading guilty, the corporation, Nexus, also acknowledged that it operated primarily through criminal means and agreed to cease operations.
The case was prosecuted by Trial Attorney Kathleen M Hamann of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania. The case was investigated by the Philadelphia , Newark , N.J. , and Houston
The Justice Department acknowledges and expresses its appreciation for the assistance provided by the authorities of the Independent Commission Against Corruption of the Hong Kong Special Administrative Region.
Shelton Developer Sentenced to Six Years in Federal Prison for Corruption, Currency Structuring Offenses
The United States Attorney’s Office for the District of Connecticut announced that JAMES BOTTI, 47, of Shelton , was sentenced today by Senior United States District Judge Charles S. Haight in New Haven
On April 1, 2010, a federal jury found BOTTI guilty of one count of mail fraud. According to the evidence presented during the trial, BOTTI used the U.S. Mail to execute a scheme to defraud the citizens of Shelton of the honest services of its public officials relating to a project that BOTTI was developing at 828 Bridgeport Avenue in Shelton 828 Bridgeport Avenue project.
The jury was deadlocked on two additional counts in the indictment on which BOTTI was tried, conspiracy to defraud and bribery of a public official. The court declared a mistrial relating to those counts.
On November 10, 2009, another federal jury found BOTTI guilty of one count of conspiracy to structure cash transactions and one count of structuring cash transactions. The jury found BOTTI not guilty of two counts of making false statements to the Internal Revenue Service - Criminal Investigation.
According to the evidence presented during the trial, BOTTI conspired with his father, Peter C. Botti, to structure cash deposits in order to hide the existence of a large amount of BOTTI’s cash from the IRS and federal law enforcement authorities.
Federal law requires all financial institutions to file a Currency Transaction Report (CTR) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
>From approximately June 2006 through January 2007, JAMES BOTTI, or Peter Botti at JAMES BOTTI’s direction, made numerous deposits of cash in amounts less than $10,001 at various financial institutions in order to evade the requirement that financial institutions file CTRs. The cash was deposited into bank accounts in the name of either JAMES BOTTI or Peter Botti. The cash that was deposited into Peter Botti’s accounts was distributed by check for the benefit of JAMES BOTTI, to an account controlled by BOTTI, or to a person associated with JAMES BOTTI. In addition, JAMES BOTTI structured large cash payments to a credit card company.
As a result of his conviction of these currency structuring offenses, BOTTI was ordered to forfeit $120,500 to the government.
Today, Judge Haight ordered BOTTI to serve 72 months of imprisonment on the mail fraud conviction, and concurrent 60-month terms of imprisonment on each of the two structuring convictions.
On June 1, 2009, Peter C. Botti pleaded guilty to one count of structuring cash transactions. He awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation. The case is being prosecuted by Senior Litigation Counsel Richard J. Schechter and Assistant United States Attorney Rahul Kale.
Sales Agent for A&O Entities in Richmond Pleads Guilty to Misleading Investors
U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Assistant Attorney General Lanny A. Breuer of the Criminal Division made the announcement after the plea was accepted by United States Magistrate Judge Dennis W. Dohnal.
Bromseth waived indictment and pleaded guilty to a criminal information alleging one count of mail fraud and and one count of structuring financial transactions to evade reporting requirements. Bromseth faces a maximum penalty of 20 years in prison for the mail fraud charge and a maximum term of five years in prison for the structuring charge.
According to court documents, Bromseth admitted to making misrepresentations about the risks associated with A&O investments, as well as his qualifications to sell such investments. Bromseth sold over $3 million in A&O products to 15 investors between July 2006 and November 2007.
This continuing investigation is being conducted by the U.S. Postal Inspection Service, Internal Revenue Service, and FBI, with significant assistance from the Texas State Securities Board. These cases are being prosecuted by Assistant U.S. Attorneys Michael S. Dry and Jessica Aber Brumberg from the Eastern District of Virginia and Trial Attorney Albert B. Stieglitz Jr., of the Criminal Division’s Fraud Section.
The investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia
President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Justice Department Settles Allegations of Disability Discrimination Against City of Satsuma, Alabama
Under the consent decree, which was approved by the U.S. District Court for the Southern District of Alabama on Sept.16, 2010, the city agreed to pay $59,000 in damages to the operator of a group home for three women with intellectual disabilities and the trustees of the three residents, as well as a $5,500 civil penalty to the government. As part of the settlement, the city also adopted amendments to its zoning laws.
“Americans with disabilities – like all Americans – have a right to live within their communities without facing discrimination,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “This comprehensive settlement compensates the individuals who were harmed and will prevent future housing discrimination against the city’s most vulnerable citizens.”
“Enforcing the nation’s housing discrimination laws is a top priority of the United States Attorneys Office for the Southern District of Alabama,” said Kenyen Brown , U.S.
The government’s amended complaint alleged that city officials violated the federal Fair Housing Act when they refused to allow Pamela Williams to operate a single-family home for three adults with intellectual disabilities in a residential neighborhood of the city, despite the fact that the city’s zoning ordinance allows up to five unrelated persons to live together in the residential zone. The group home residents previously resided at the now closed Albert P. Brewer Development Center Alabama
According to the complaint, city officials told Ms. Williams that she could not operate the for-profit group home for residents with disabilities in the residential neighborhood without a business license, but city policy prohibited the issuance of business licenses for such homes in residential zones. The lawsuit also alleged that city officials refused to make a reasonable accommodation in the city’s rules, policies, practices or services that were necessary to afford the residents an opportunity to use and enjoy their home, as required by the Fair Housing Act.
The consent decree requires that the city maintain records relating to future proposals for housing for persons with disabilities, submit periodic reports to the Justice Department for a period of four years, and ensure that certain employees undergo training on the requirements of the Fair Housing Act. In accordance with the decree, the city also adopted amendments to its zoning ordinance and business license law that:
•Establish a reasonable accommodation policy by which a resident with a disability, or a housing provider on behalf of a resident with a disability, may seek a reasonable accommodation from the city;
•Modify the zoning ordinance’s definition of “family” to expressly provide that persons with disabilities, including residents of group homes, will not be excluded from the definition, regardless of whether the group home is for-profit or non-profit;
•Require city officials to issue a business license when it is necessary to effectuate reasonable accommodations under the city’s new policy; and
•Include a category for “group homes” in the city’s business license law.
The case began when Ms. Williams and the three residents of the group home filed complaints with the Department of Housing and Urban Development (HUD). HUD referred the complaints to the Justice Department, which conducted an investigation and filed the lawsuit in May 2008.
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.justice.gov/crt/housing/fairhousing or www.hud.gov/fairhousing.
New Jersey Man Charged in $1.8 Million Bank Fraud Scheme
An indictment was unsealed today against Brian Geller charging a multi-year bank fraud scheme that netted him over $1.8 million between the summer of 2005 and the summer of 2009, announced United States Attorney Zane David Memeger. Geller was also charged with engaging in transactions over $10,000 with the proceeds of the fraud.
The 22-count indictment charges that Geller, while an employee of JPMorgan Chase Services, manipulated JPMorgan Chase Bank’s internal books and records and caused the Bank to wire transfer to his account, to accounts of his family, and to accounts in which his life partner had right, title, interest or control. The indictment claims that among the wire transfers of funds was one in 2005 for over $499,500, one in 2008 for $583,444.99, and one in 2009 for another $583,444.99.
INFORMATION REGARDING THE DEFENDANT
NAME: Brian Geller
ADDRESS: Sewell , New Jersey
AGE OR YEAR OF BIRTH: 1978
If convicted, Geller faces a statutory maximum possible sentence of 240 years in prison, a fine of $6.25 million, $2,200 in special assessments, and up to five years’ supervised release.
The case was investigated by the FBI is being prosecuted by Assistant United States Attorney Pamela Foa.
4 indicted in Washington, D.C. for MS-13 gang activities
The indictment was returned Thursday, Sept. 16, 2010, in the U.S. District Court for the District of Columbia and announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Immigration and Customs Enforcement (ICE) Director John Morton, U.S. Attorney Ronald C. Machen Jr., John P. Torres, Special Agent in Charge of the ICE Office of Homeland Security Investigations (HSI) in Washington, D.C., and Cathy L. Lanier, chief of the Metropolitan Police Department (MPD).
The indictment names Carlos M. Silva, Omar R. Aguilar, Wilfredo Mejia and Henry Sarba. The defendants previously were charged in the Superior Court of the District of Columbia
According to the indictment, Silva, Aguilar and Mejia invaded an apartment in Washington , D.C.
Silva, 28, Aguilar 20, and Mejia, 25, subsequently were arrested and originally charged in D.C. Superior Court. Sarba, 20, allegedly began calling potential witnesses sometime after the arrests and made threats.
The indictment charges Silva, Aguilar and Mejia with kidnapping in aid of racketeering, assault with a deadly weapon in aid of racketeering, weapons offenses, and other charges. Silva also is charged with assault with intent to commit first degree sexual abuse while armed and third degree sexual abuse. Sarba was indicted on charges including accessory after the fact, obstructing justice and threatening to injure or kidnap a person.
The indictment states that MS-13 is a racketeering enterprise that constitutes one of the largest street gangs in the United States
"Investigating and prosecuting violent gangs is among the highest priorities of the Department of Justice," said Assistant Attorney General Breuer. "We will not allow violent criminal organizations like MS-13 to terrorize our neighborhoods and communities. The Criminal Division is committed to working with its law enforcement partners to ensure that members of these organizations are brought to justice."
"MS-13 is an extremely violent criminal organization that operates in at least 20 states and the District of Columbia , as well as in Mexico , Honduras , Guatemala and El Salvador
"This indictment demonstrates the resolve of Homeland Security Investigations to aggressively pursue transnational criminal gangs like MS-13," said ICE Director Morton. "We will work with our law enforcement partners to make our communities safer by targeting criminal gang members for prosecution."
"This is the third major indictment in the last week that has involved gangs or drugs," said MPD Chief Lanier. "The message to gang members and other criminals should be clear. We will not tolerate this violence and intimidation in our city."
-- ICE --
12 arrested in ICE-led, multi-agency anti-gang operation
Actions part of agency's national gang enforcement effort -- Operation Community Shield
SANTA MARIA, Calif. - Twelve Mexican nationals with ties to a violent street gang in Santa Maria, Calif., are facing federal criminal charges or deportation following an enforcement operation involving U.S. Immigration and Customs Enforcement's (ICE) Office of Homeland Security Investigations (HSI) and several local law enforcement agencies, including the Santa Maria Police Department.
The arrests are the culmination of a two-month investigation targeting members of the West Park Sureños street gang carried out as part of ICE HSI's ongoing national anti-gang initiative Operation Community Shield. Under this initiative, ICE HSI partners with other federal, state and local law enforcement agencies across the country to target the significant public safety threat posed by transnational street gangs.
In addition to the Santa Maria Police Department, ICE received substantial assistance with the operation from the police departments in Lompoc and Guadalupe; the Santa Barbara and San Luis Obispo county sheriff's departments; the Santa Barbara District Attorney's Office; the Santa Barbara County Probation Department; California State Probation and Parole; the FBI; and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The 11 men and one woman arrested as part of the enforcement action all have criminal histories, including prior arrests and convictions on charges ranging from drug and weapons violations to robbery and domestic violence. With one exception, they were taken into custody over the course of the last two days.
The exception, Jose Diaz-Diaz, was arrested Sept. 7 at his Santa Maria
While Diaz-Diaz faces criminal charges, the other individuals arrested during the operation were taken into custody on administrative immigration violations. They will be detained by ICE and scheduled for a deportation hearing before an immigration judge.
"This operation shows our shared resolve to fight back against the street gangs that are threatening our neighborhoods," said David Wales, resident agent in charge of the ICE HSI Office that oversees the agency's operations in Santa Barbara County
"I want to express my appreciation to all of the agencies involved in this operation, particularly Homeland Security Investigations," said Santa Maria Chief of Police Danny Macagni. "By pooling our resources, intelligence and expertise, we've taken a number of dangerous individuals off of our streets and helped make this a safer environment for everyone."
Since Operation Community Shield began in February 2005, ICE agents have arrested more than 18,900 gang members and gang associates nationwide. That figure includes nearly 400 individuals arrested this fiscal year alone in the seven-county ICE HSI jurisdiction that encompasses the Santa Maria
Under Operation Community Shield, ICE HSI is using its powerful immigration and customs authorities in a coordinated, national campaign against criminal street gangs across the country. As part of the effort, HSI's National Gang Unit identifies violent street gangs and develops intelligence on their membership, associates, criminal activities and international movements to deter, disrupt and dismantle gang operations.
To report suspicious activity, call ICE's 24-hour toll-free hotline at: 1-866-347-2423 or visit www.ice.gov.
-- ICE --
Owner of North Attleboro Seafood Dealer Pleads Guilty to $7 Million Bank Fraud
BOSTON, MA—The owner of Ocean Fresh Seafood, Inc. was convicted in federal court late yesterday of engaging in a scheme to defraud Wells Fargo Business Credit, Inc., a division of Wells Fargo Bank NA, of at least $7 million.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation - Boston Field Office announced that ROBERT COUTU, 59, of Cumberland, Rhode Island pleaded guilty before U.S. District Judge Nancy Gertner to conspiracy to commit bank fraud, bank fraud, and money laundering.
At the plea hearing, the prosecutor told the court that Coutu was the owner of Ocean Fresh Seafood, Inc., headquartered in North Attleboro , when he orchestrated a scheme to defraud Wells Fargo. Since 2002, Wells Fargo had extended a line of credit to Ocean Fresh, secured by Ocean Fresh’s accounts receivable and inventory. Coutu, with the assistance of other Ocean Fresh employees, falsely inflated Ocean Fresh’s receivables and inventory balances in order to borrow millions of dollars more than his actual business activity would have permitted. To accomplish the scheme Coutu, and others, created false invoices and wired funds from Ocean Fresh’s bank account to accounts managed by affiliates and friends of Coutu to give the appearance that Ocean Fresh was buying and selling much more product than it actually was. Ocean Fresh’s former Controllers, Christopher Day and Cynthia Larose were indicted for conspiracy to commit bank fraud, along with Coutu. Larose has pleaded guilty and is awaiting sentencing. Day is awaiting trial.
Judge Gertner scheduled the sentencing hearing for January 19, 2011. Coutu faces up to 30 years’ imprisonment, to be followed by five years’ supervised release and a $1 million fine on the bank fraud charge; up to 10 years' imprisonment, to be followed by three years’ supervised release and a $250,000 fine on the money laundering charges; and five years’ imprisonment, three years’ supervised release and a $250,000 fine on the conspiracy charge.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service’s Criminal Investigation. It is being prosecuted by Assistant U.S. Attorneys Sarah E. Walters and Vassili N. Thomadakis of Ortiz’s Economic Crimes Unit.
Former Wethersfield Resident Admits Operating $100 Million Ponzi Scheme
David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MICHAEL S. GOLDBERG, 39, formerly of Wethersfield, waived his right to indictment and pleaded guilty today before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport to three counts of wire fraud stemming from his operation of a $100 million “Ponzi” scheme that defrauded investors of more than $30 million over an approximately 12-year period.
“For 12 years, this defendant lured hundreds of investors with one false promise after another, the end result being financial misery for many of them,” stated U.S. Attorney Fein. “The U.S. Attorney’s office is committed to investigating financial fraud crimes, seeking appropriate prison terms and securing restitution for victims.”
“Michael Goldberg’s actions have devastated the financial security of hundreds of innocent investors,” stated FBI Special Agent in Charge Mertz. “The FBI, along with our law enforcement and regulatory partners will continue to police the actions of those preying upon the investing public.”
According to court documents and statements made in court, from approximately 1997 to November 2009, GOLDBERG devised and executed a scheme to defraud numerous investors by soliciting millions of dollars of funds under false pretenses, failing to invest the investors’ funds as promised, paying existing investors with new investors’ money, and misappropriating and converting investors’ funds to GOLDBERG’s own benefit and the benefit of others without the knowledge or authorization of the investors. Initially, GOLDBERG transacted with investors in his own name. Beginning in September 2005, GOLDBERG received investments through Michael S. Goldberg, LLC, which at times did business as Acquisitions Unlimited Group.
GOLDBERG’s scheme to defraud investors involved principally two different types of misrepresentations. First, GOLDBERG solicited individuals to invest money in “diamond contracts.” In order to induce individuals to invest money, GOLDBERG represented that he would use investors’ money to purchase diamonds at extremely low prices from vendors in New York City
However, the vast majority of GOLDBERG’s fraud involved his solicitation of individuals and organizations to invest money in the purchase of distressed assets from JP Morgan Chase Bank (“Chase”). GOLDBERG falsely represented to potential investors in these “Chase asset deals” that Chase had granted him a contractual right to purchase foreclosed and seized business assets from a Chase Foreclosure Manifest, which he would then resell in prearranged transactions to large, well-known corporations. GOLDBERG represented that his purchase and resale of these foreclosed assets would enable him to pay investors a return on capital of up to 20 percent in a short period of time, typically 90 days. In addition, GOLDBERG represented that Chase would refund the purchase price of any asset that could not be resold, and that therefore there was no risk to the investor that any principal investment would be lost.
In order to induce individuals to invest in both diamond contracts and Chase asset deals, GOLDBERG typically drafted and entered into a “Business Investment Agreement Form” with each investor. In these forms, GOLDBERG set out the terms of the investment, including the amount of the return on capital and the date the return was to be paid. In many of the agreements, GOLDBERG indicated that he would be responsible for the payment of all taxes, and also included language explaining the risk-free nature of the investment.
As part of his scheme to defraud the investors, GOLDBERG also compensated other individuals (“feeders”) for locating new investors, primarily in Chase asset deals, through the payment of a “finder’s fee.”
Through this scheme, GOLDBERG induced more than 350 individuals to invest more than $100 million in diamond contracts and Chase asset deals. Certain investors have lost a total of more than $30 million as a result of the scheme.
In pleading guilty today, GOLDBERG admitted that each and every one of his representations were false. Aside from a brief period in 1997, he did not purchase diamonds in New York City
GOLDBERG is scheduled to be sentenced by United States District Judge Janet C. Hall on December 2, 2010, at which time GOLDBERG faces a maximum term of imprisonment of 60 years. GOLDBERG also will be ordered to pay restitution of at least $30 million. GOLDBERG is involved in two Chapter 7 bankruptcy proceedings that are currently pending the United States Bankruptcy Court in Hartford
GOLDBERG voluntary disclosed his scheme to federal authorities in November 2009 and presented a check to the government consisting of $500,000 of investors’ money. He has been released on a $1 million bond since his arrest on November 23, 2009.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney David E. Novick.
This law enforcement action is part of the work being done by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit StopFraud.gov.
Winsted Man Arrested on Federal Child Pornography Charges
David B. Fein, United States Attorney for the District of Connecticut, and Kimberly K. Mertz, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that TRAVIS CARLSON, 28, of Nanni Drive, Winsted, was arrested today by members of the Connecticut Computer Crimes Task Force on a federal criminal complaint charging CARLSON with possession, receipt, and distribution of child pornography.
The complaint alleges that CARLSON utilized an Internet file sharing network to receive and distribute images of child pornography.
Following his arrest this morning at his residence, CARLSON appeared before United States Magistrate Judge Donna F. Martinez in Hartford
If convicted of the charge of possession, receipt and distribution of child pornography, CARLSON faces a mandatory minimum term of imprisonment of five years, and a maximum term of imprisonment of 20 years and a fine of up to $250,000.
U.S. Attorney Fein stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation and the Connecticut Computer Crimes Task Force, which includes federal, state, and local law enforcement agencies. The Winchester Police Department has assisted the investigation. The case is being prosecuted by Assistant United States Attorney Deborah R. Slater.
The Connecticut Computer Crimes Task Force investigates crimes occurring over the Internet, including computer intrusion, Internet fraud, copyright violations, Internet threats and harassment, and online crimes against children. The Task Force also provides computer forensic review services for participating agencies. The Task Force is housed in the main FBI office in New Haven , Connecticut
U.S. Attorney Fein noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
To report cases of child exploitation, please visit www.cybertipline.com.
Two Raytown Men Charged in Armed Robbery of Brink’s Truck
Deangelo Colston, 20, and Gerald Jones, 20, both of Raytown, were charged with armed robbery in a criminal complaint that was filed in the U.S. District Court in Kansas City.
Today’s complaint alleges that Colston and Jones stole $130,000 at gunpoint from two Brink’s, Inc., employees who were delivering money to an ATM at Bank of America, 3100 Main, Kansas City, Missouri, on Aug. 30, 2010.
According to an affidavit filed in support of the federal criminal complaint, the Brink’s armored vehicle was parked in the bank’s drive-through at about 2:30 p.m. on Aug. 30, 2010. The driver remained in the vehicle while another Brink’s employee serviced the ATM. Colston, Jones and another person (who is not identified) allegedly exited a vehicle that was parked next to the drive-through. One of the men pointed a semi-automatic handgun at the driver of the armored vehicle, the affidavit says, while two men held semi-automatic handguns on the second Brink’s employee who was opening the ATM.
The Brink’s employee, who felt a gun pressed against his left ear and another at the back of his head, held both of his hands up, the affidavit says. The armed robbers took two bags, one of which contained $130,000 in $20 bills and the other paperwork. The three robbers fled in a Ford SUV.
Law enforcement officers received an anonymous tip on Sept. 9, 2010, identifying Colston and Jones as two of the armed robbers. According to the affidavit, the caller said that Colston and Jones had spent approximately $2,500 taking a “crew” to Worlds of Fun, had been spending money at Independence Center, and that Jones had just purchased a Dodge Charger.
Jones was arrested during a traffic stop the next day, Friday, Sept. 10, 2010. He was carrying $400 in mostly $20 bills, the affidavit says, and police officers found $900 in $20 bills in his vehicle. Colston was also arrested in a separate traffic stop the same day. Law enforcement officers executed a search warrant at the residence where Jones and Colston were staying and discovered a pillowcase containing 10 stacks of $20 bills banded together, a backpack containing 33 stacks of $20 bills bundled together, another pillowcase containing two stacks of $20 bills bundled together and a loaded Jimenez Arms 9mm semi-automatic handgun.
Phillips cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Federal Bureau of Investigation, the Kansas City , Missouri , Police Department, the Raytown , Missouri , Police Department and the Independence , Missouri
Cottage Grove Woman Sentenced for Robbing Maplewood Bank
A 30-year-old Cottage Grove woman was sentenced yesterday in federal court in Minneapolis for the August 29, 2009, robbery of a Wells Fargo Bank in Maplewood Asuncion
In her plea agreement, Asuncion Asuncion Asuncion Asuncion Asuncion Asuncion
This case was the result of an investigation by the FBI and the Maplewood Police Department. It was prosecuted by Assistant U.S. Attorney Michelle E. Jones and former Assistant U.S. Attorney Tricia A. Tingle.
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