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StumbleHenderson man pleads guilty to mortgage fraud
Wednesday, April 7, 2010 | 4:31 p.m.
Tye Brown, 50, of Henderson, pleaded guilty to felony mortgage fraud in violation of state law in connection with the operation of DB Financial Services, a foreclosure rescue business in Henderson, Nevada Attorney General Catherine Cortez Masto said today.
The crime carries a potential prison sentence of one to 10 years and/or a fine of up to $10,000. The plea agreement also requires Brown to pay to individual victims restitution totaling $19,407.
“In 2007, the Nevada Legislature enacted legislation creating the crime of mortgage lending fraud, which previously did not exist in Nevada," Cortez Masto said. “The new law is a powerful tool for my mortgage fraud task force in its battle to investigate and prosecute mortgage fraud crimes in Nevada.”
The state charged Brown with falsifying loan applications, which he submitted to lenders by inflating the incomes of his victims in order to demonstrate a better financial condition or ability to pay a monthly mortgage. In other cases, he misled customers into believing that, for a fee, he would guarantee resolution of a victim’s pending mortgage foreclosure.
The state’s case against Brown was based on an investigation by the attorney general’s mortgage fraud task force. The investigation revealed that between December 2007 and February 2008, Brown contacted victims whose homes were going into foreclosure and obtained advance payments of up to $999 for foreclosure rescue services that he never performed. He failed to give refunds despite promising them in his contracts and advertising. He also forged documents to the state Mortgage Lending Division to cover up the criminal activity.
Shortly after execution of a search warrant on the DB Financial offices in 2008 by the mortgage fraud task force, Brown fled the country. He was extradited back to this country from the Philippines, where he was in hiding to evade authorities. The plea agreement requires Brown to forfeit monies seized from his company to pay for the costs of his extradition from the Philippines.
A sentencing date has been scheduled for June 9 before District Court Judge Kenneth Cory. Under the terms of the agreement, Brown is not eligible for probation and will serve a minimum of 12 to 30 months in a Nevada prison.
Anyone who has information regarding loan modification or mortgage fraud scams should contact the Attorney General’s office at 486-3777 in Las Vegas or 775-684-1180 in Carson City.
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Why is Nevada not prosecuting persons such as Dick Fuld (CEO of Lehman), Angelo Mozilo (CEO of Countrywide), Senator Phil Gramm(R), TX (aka "foreclosure Phil," instrumental in repealing the Glass-Steagall Act of 1933), Henry Paulson (Secretary of the Treasury), and Alan Greenspan, "The Maestro?" Some Maestro, Maestro of Destruction that is.
The moral here? Before working with a Nevada loan modification company or foreclosure specialist it's important to check their credentials.
To determine if a company is legitimate go to the State of Nevada Division of Mortgage Lending website, http://mld.nv.gov. The most recent list of licensees is available at http://mld.nv.gov/Chapter645/Chapter645F....
www.nevadaloansnow.com.
SARAH1 -- the joke's on you. The biggest scammers -- MERS, DeutscheBank, and their parasites -- are all licensed and improved. Guys like this are small fry, someone to trot out occasionally to justify Masto's funding.
The suits continue to feed with government approval while none are a bit interested in the REAL issues -- only the Note Holders are entitled to receive payments, and those foreclosing entities mostly can't even tell you who those Note Holders are. No Note = no NoteHolder = no loan or debt.
"If you're going to take my house away from me, you better own the note." -- Joe Lents (who hasn't made a payment on his $1.5 million mortgage since 2002) in Bloomberg's 2/22/08 "Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish"