Home >> News >> Government >> B of A Case, Two Attorneys Make Friday Fraud Blotter
Print This Post Print This Post
Fraud

B of A Case, Two Attorneys Make Friday Fraud Blotter

A ""Bank of America"":https://www.bankofamerica.com/ case, two attorneys, and state legislation that made mortgage fraud felonious helped complete the _MReport_ mortgage fraud blotter Friday.

[IMAGE]

_MReport_ sourced two stories from the ""_Associated Press_"":http://www.chicagotribune.com/news/local/chi-ap-mi-mortgagefraud-mic,0,3962438.story and ""_South Florida Business Journal_"":http://www.bizjournals.com/southflorida/news/2011/10/19/Miami-attorney-Versailles-mortgage-fraud.html, with another two from _Reuters_.

First up? _Reuters_ ""reported"":http://www.reuters.com/article/2011/10/21/us-bankofamerica-aig-lawsuit-idUSTRE79H3A420111021 that ""American International Group Inc."":http://www.aigcorporate.com/index.html lost a bid to relocate a $10-billion lawsuit against B of A to more favorable environs.

The news service said that U.S. District Judge Barbara Jones signed off on the latter bank's argument that a 1919 federal law gave jurisdictional authority to her federal court in the matter of 349 residential mortgage-backed securities purchased by AIG.

AIG brought the case against the mortgage giant in early August with accusations that it orchestrated a ""massive"" fraud, according to _Reuters_, with allegations that the Countrywide unit it purchased had misrepresented $28 billion in securities.

A spokesperson for B of A did not return _MReport's_ request for comment by e-mail.

In other industry-related news, the _Associated Press_ reported that Michigan Gov. Rick Snyder inked his name to a bill that makes mortgage fraud a specific a felony punishable by a jail sentence and substantial fines.

[COLUMN_BREAK]

Felons convicted of mortgage fraud under Michigan law will face up to 20 years behind the slammer and half a million dollars in fines for crimes that include falsifying property deeds and securing real estate under false pretenses, according to the news service.

The _AP_ reported that judges will administer penalties according to the amount of financial gain exacted by convicts.

_MReport_ lastly captured a look at two attorneys nabbed for their alleged roles in mortgage fraud activity.

_Reuters_ fielded the ""story"":http://newsandinsight.thomsonreuters.com/Legal/News/2011/10_-_October/Lawyer_who_helped_orchestrate_$92_mln_mortgage_fraud_disbarred/ of an attorney who lost his license Friday for more than $92 million in mortgage fraud activity he committed last year.

Plainview-based attorney Ted Doumazios knowingly helped mortgage-fraud legend Thomas Kontogiannis rip off others by pushing titles his way for the fraudulent transaction, according to the news service.

_Reuters_ reported that he pled guilty to the charges, for which he awaits his sentence, late last year, with U.S. District Judge Kiyo Matsumoto writing for his court that ""the motion to strike the respondent's name from the roll of the attorneys is granted"" ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô a decision that applies to the day of his acknowledgement of guilt.

And finally, the _Business Journal_ threw in the story of one Kimberly Daise, a Miami-based attorney charged Wednesday for her alleged role in helping exact $3.2 million in fraudulently obtained mortgage loans and $500,000 in illicit proceeds from a Florida property.

The news outlet published a press release alleging her involvement in the scam, whereby she falsified and submitted loan applications to lenders.

The area in which Daise allegedly committed the crimes is not without a history for the illicit activity.

The _Business Journal_ cited a 2009 case in which 15 South Floridians received charges for their alleged roles in securing some $20 million in fraudulent loans from the area.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
x

Check Also

Single American Homeowners Becoming More Prominent in 2024

No partner? No problem. A new survey from Pennymac revealed that while down payments are more expensive for single Americans buying a home, more than half of respondents believe waiting to get married or a significant other to buy a home is and outdated idea.