Fraudulent and Review Appraisal

 

 

 

 

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If you feel TBTF banks have destroyed our justice system, If you feel that you have not been adequately represented by your Attorney General, if you feel that you have been defrauded by your bank and justice is not served, please sign the petition. 

Wells Fargo appraised our home twice:

1.
Wells Fargo Fraudulent Appraisal

2.
Wells Fargo Review appraisal

Fact: 

Rels Valuation is an appraisal company, which Wells Fargo owns 49%.  Rels Valuation hired T.J. Magee to appraise our home in 2005.  T.J. Magee intentionally made a fraudulent and hugely inflated our home.  He appraised our home for $718,000, which later he was disciplined by Nevada Attorney General's Office.

Rels Valuation also hired another appraiser to review T.J. Magee's appraisal to determine whether it was fraudulent.  The review appraiser valued our home and appraised our home for $475,000

After Rels Valuation reviewed both of its fraudulent and review appraisals, it wrote a letter to Wells Fargo lying about the fact that T.J. Magee's appraisal was fraudulent and hugely inflated our home value.

I quote here:

"After reviewing the homeowner's letter with respect to the errors found in the appraisal report, we have determined that these inaccuracies are minor in nature and would have a minimal impact to the final value conclusion."

The value difference is $243,000 between the fraudulent and review appraisal.  Rels Valuation states that $243,000 would have a minimal impact to us?  What a lie!

After Wells Fargo reviewed both of its fraudulent and review appraisals, it wrote a letter to us lying about the fact that T.J. Magee's appraisal was fraudulent and hugely inflated our home value.

I quote here:

"WFHM underwriting reviewed the appraisal and it was found acceptable for our lending purposes."


Pursuit to NRS 205.372 and federal Truth-in-Lending Act, It’s ILLEGAL FOR 
LENDERS TO VOLUNTARILY MAKE MORTGAGE LOANS BASED ON FRAUDULENT APPRAISALS.  It is also illegal to induce Lenders to make mortgage loans based on fraudulent appraisals.


Case 1:  Mortgage broker sentenced to 20 months 

United States of America v. Hassan Nagi, Case Number 08CR20443-1, USM Number 42941-039 filed by United States Attorney’s Office, Eastern District of Michigan

Hassan Nagi, 31, Dearborn, Michigan, a mortgage broker, was sentenced to 20 months’ imprisonment in connection with a multi-million dollar fraud scheme.  Nagi secured financing from various banks using inflated appraisals. 

Michigan US Attorney Berg stated, “The current economic environment demands vigorous enforcement and stiff punishment against those who obtain mortgages under false pretenses and thereby increase the cost of home ownership for all Americans.  These are not victimless crimes and we will work tirelessly to ensure that those who commit fraud are brought to justice.”

 

Case 2:  Attorney General holds mortgage industry accountable

 

State ex rel Cordray v. Weststar Mortgage, Inc., Case Number 09cv534 filed by Ohio Attorney General’s Office.

 

Weststar Mortgage, Inc. was held accountable for its part in the foreclosure crisis for engaging in unfair and deceptive home appraisal practices.  “Appraisal influence is a damaging practice that often goes undetected until it is too late.” said Ohio Attorney General Richard Cordray. “With this case, we advance one more step in cleaning up the destructive actions that led to the foreclosure crisis.”

 

Case 3:  Phillip Hill, nine others convicted in Atlanta of $41 million mortgage fraud

 

United States of America v. Phillip Hill 104 CR 569 filed by United States Attorney’s Office, Northern District of Georgia.

 

United States Attorney David E. Nahmias said of the verdicts, “The monetary loss calculated to date is in excess of 41 million dollars but we expect it to be significantly higher when we conclude our work.  More importantly, this monetary loss, as great as it is, does not fully capture the loss to the many neighborhoods and condominium communities that have been gutted of their value due to this one fraud scheme.  These guilty verdicts condemn the corrupt actions of the key people who were responsible for this fraud scheme, from crooked attorneys and appraisers, to loan officers, to the man at the top, Phillip E. Hill.  The verdicts in this case take us one step closer to repairing the corroded cornerstone of a large-scale corrupt housing market that has made the metro Atlanta area one of the most active mortgage fraud locations in the nation.”

 

The appraisers who created the fraudulent appraisals used in the scheme were Julian Perez, who pleaded guilty before trial, and Fred Farmer, and Barbara Brown, who were convicted in this trial.

 

As part of the fraud scheme, two attorneys were previously convicted of mortgage fraud for submitting fraudulent documents, and at home closings, facilitating the distribution of the monies to the co-conspirators.  Attorneys pleaded guilty to conspiracy

to commit mortgage fraud.

 

Case 4:  Appraiser pleads guilty in New Jersey affordable homes mortgage fraud case

 

United States of America v. Michael Meehan, Case Number 2:07-CR-212-JLL-01

 

Michael Meehan, 47, Bellmar, New Jersey, pleaded guilty to a one-count information which charges him with conspiracy to commit wire fraud for creating and submitting to various mortgage lenders materially false and misleading home appraisals.  The appraisals materially overstated the value of the properties and falsely claimed that the properties had substantial improvements, such as new windows, bathrooms, siding and plumbing and electric systems, Meehan admitted.

 

The charges to which Meehan and his co-defendants pleaded guilty carry a statutory maximum penalty of five years in federal prison and a fine of $250,000, or twice the aggregate loss to any victim or aggregate gain to the defendants.

 

Case 5:  Fourth defendant pleads guilty in mortgage fraud scheme

 

United States of America v. Karen Kewitt filed by United States Attorney’s Office, Northern District of New York.

 

Karen Kewitt, 51, a resident of New York, plead guilty to her role in the scheme in which Michael Cassadei and others used fraudulent loan applications, appraisals, settlement statements. And other false statements and documents to induce the former First Union National Bank of Delaware to finance the sale of Capital Region.

 

Wells Fargo not only made mortgage loan to us based on fraudulent appraisal, but also knowingly and maliciously attempt to foreclose our home based on fraudulent appraisal and mortgage loan.