Editorial & Additional Links

          EDITORIAL – Predatory Lenders and Fraudulent Mortgages

CHICAGO - Any financial problems had in the past are not justifiable reasons for a home to be stolen. Predatory lenders along with mortgage fraud are quickly becoming the # 1 crime in the United States and the homeowner has the power to shut down the thieves regardless of who and what company they represent. Your home is more than financial security; it is your place of peace, your children’s stability, and your refuge. 

When fraudulent mortgages are issued by generally the SAME COMPANIES who have lawyers defending the “right” to STEAL your home under the guise “the lender didn’t know a fraud was committed” the public then depends upon the legal system to correct the wrong.  It becomes the legal system and the homeowners’ responsibility to get the word out regarding fraudulent mortgage companies and/or predatory lenders and also about anyone helping in the theft. The mortgage company and/or bank involved and all associated with it must be held accountable; absolutely no person or organization can be allowed to slip under the radar.

 A special note must be made regarding the attorneys and law firms that place financial gain above ethics and responsibility to protect the public. It is inexcusable when the legal system becomes the sword in the heart of the homeowner via the lawyers. When a lawyer has complete and absolute proof of fraud yet continues to assist in the theft of a home and goes before a court of law and lies; that attorney has committed “Fraud upon the Court” which is grounds for disbarment. As the protector of your home don’t be afraid to take them there!

This editorial is dedicated to the Real Estate Brokers, the “A” Buyers, the Loan

Originators, the Lawyers, the Banks and the Mortgage Companies involved in the

stealing of homes for profit; for after working hand-in-hand to steal your home they

deserve to be recognized.

Consider this editorial as a call to action. If your home has been stolen don’t sit quietly by and wait for someone to help you. Get up, gather your records, and hire a reputable attorney (if you don’t have the funds check with your city and county for assistance) get information and file complaints with your state, F.B.I. and the Internal Revenue Service. Contact your community organizations (a good one is The National Training and Information Center NTIC). Don’t stop there, file complaints against the mortgage companies (get the name of the Founder and CEO), go after the license of the real estate brokers and loan originators (who are or should be licensed in most states), go after the so-called “A” buyers and don’t leave out the lawyers; file complaints against unethical attorneys with your States Supreme Court. Go to the media, generate interest, put out your own press releases, and contact your Congressmen and Senators repeatedly. NEVER become a silent participant in the theft of your home.



It must be said that there are reputable people in the real estate, banking and legal professions; the problems are with the crooks that have not only given a bad name to their professions but also cause mistrust of the public for all of the industries involved.

Homes across America are being stolen; it is not a local or regional issue but a national disgrace that cannot be tolerated or accepted.


In closing it must be noted that while some of our elected officials are doing outstanding jobs (Illinois examples would be The Secretary of State and The Attorney General Offices) more needs to be done by the representatives in our states and Washington, D.C. When a home is stolen that is another constituent (or to truly express it correctly another voter) who needed your help in passing and implementing laws. Elected officials; are you willing to step up and if so WHEN?






                                Distressed Homeowner Initiative
                           Don’t Let Mortgage Fraud Happen to You



Talk about going from bad to worse—more than 4,000 financially strapped homeowners recently lost at least $7 million to a California business that allegedly operated a loan modification scam. Last month, 11 representatives of that company were federally indicted, but by that time, many of the victims had already lost their homes.

Today, to help protect distressed homeowners around the country from a rising tide of fraud schemes—and to raise awareness about them—the FBI joined the Department of Justice, the Department of Housing and Urban Development, and the Federal Trade Commission (FTC) in announcing the results of the Distressed Homeowner Initiative. This initiative was launched by the Bureau—co-chair of the Financial Fraud Enforcement Task Force’s Mortgage Fraud Working Group—in October 2011.

This initiative combines the resources of federal, state, and local law enforcement agencies and the efforts of regulatory agencies to target perpetrators both criminally and civilly. Over 200 companies have been shut down, and criminal charges were filed against 530 defendants. These cases involved losses of more than $1 billion from more than 73,000 victims across the country.

Said Associate Deputy Director Kevin Perkins, “In contrast with previous initiatives, where the fraud victims primarily were lenders, the focus here is on individual homeowners, many times at their most vulnerable point.”

Based on intelligence from multiple sources, schemes targeting distressed homeowners have emerged throughout the country, and while the majority of FBI mortgage fraud cases involve loan origination fraud, we’ve had a 300 percent increase over the past three years in cases involving distressed homeowner fraud.

And with current mortgage data showing that 22.3 percent of residential properties with mortgages are “underwater” —when borrowers owe more than their homes are worth—we believe that fraudsters will certainly continue to target distressed homeowners.

We’ve also noticed a disturbing trend among these cases—an increasing number of lawyers playing primary or secondary roles in the fraud. In 2010, the FTC issued a rule that prohibited companies that offer loan modification or other types of mortgage assistance services from asking for fees in advance (some states have similar regulations), but with an exemption in some instances for lawyers performing legal work. Criminals targeting distressed homeowners try to circumvent the rules by using attorneys—which by itself adds an air of legitimacy to their fraudulent schemes—and calling their upfront fees “legal retainers.”

The FBI’s Financial Intelligence Center played a critical role at the outset of the initiative by reviewing and analyzing thousands of consumer complaints referred to us by our partners at the FTC, which helped identify where high-priority offenders were operating and allowed us to strategically deploy our investigative resources. The analysis of information from our partner agencies and from our own investigations will continue to be a vital part of our efforts to protect homeowners. The FBI also remains committed to targeting the most egregious criminal offenders with sophisticated investigative techniques—like undercover operations and court-authorized electronic surveillance—and through joint efforts with our law enforcement and regulatory partners.

If you have been victimized by those who claimed they could get you some kind of mortgage relief but didn’t, please submit a tip to us online or contact your local FBI office.


             SCAMMING 101

Excerpts of instruction letter from a distressed homeowner fraud perpetrator to a new employee:

“Never use your real last name.”

“Make an effort to not meet with customers. I built a huge business without ever meeting a single customer because I explained everything over the phone and e-mailed or faxed everything.”

“Pay cash for everything or purchase [prepaid] gift cards.”

“Purchase a prepaid phone and then go online and create an account with an alias name and address.”

“Purchase an inexpensive laptop and set up a fictitious e-mail account.”

“Purchase software that hides your IP address.”

“Do not use your home Internet. I heard that [company name] is offering wireless cards for laptops and you don’t need your real name or address to get it. You can also find out who has free Wi-Fi in your area.”

“The bottom line is that I want you to become invisible…Be available but invisible…I don’t want your customers hunting you down in case we can’t stop their sales.”


Neighborhood Assistance Corporation of America (NACA)

Neighborhood Housing Services of Chicago (NHS) 


The Sentinel Newsletter of the Utah Division of Securities January 2007

Ripoff Report

FBI 2006 Mortgage Fraud Report

Mortgage Fraud Blog

Contact Elected Officials

U.S. Department of Housing and Urban Development

Home of Felix Daniel of RYM Technology
and Penny Properties

Felix Daniel lives on a GOLF Course in Michigan (Additional pictures under 
Living Large)


Department of Justice: More than 400 defendents charged for roles in mortgage fraud schemes. June 18, 2008
NBC News March 22, 2008
Michigan Eastern Federal District Court
Haynes et al v. RYM Technology Holdings, LLC et al
Case # 2:2008cv10358

Fox News Special Report 02/04/2008

MSNBC News: Joy Jackson Washington D.C.

Utah Stipulation and Consent Order SD-06-0097 September 14, 2007

Illinois Secretary Of State Order Of Prohibition File 0600670 August 14, 2007

Arizona Corporation Commission Docketed October 16, 2007 S-20509A-07-0043 DECISION # 69941

Utah Stipulation and Consent Order SD-06-0097, SD-06-0098, SD-06-0099, SD-06-0100, SD-06-0101

Multi-State Settlement July 2007

Illinois Real Estate License Lookup and Complaint Form

Illinois Supreme Court Attorney Disciplinary Commision

FTC Consumer Complaint Form

Illinois Attorney General

Ameriquest Watch by Inner City Press

Illinois Attorney General Lawsuit Against American Housing Authority, Inc.


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