Tuesday, August 16, 2011

Title Agent Among Trio Copping Guilty Pleas In Refinance Racket That Illegally Diverted Mortgage Proceeds, Leaving Borrowers' Existing Loans Unpaid

From the Office of the U.S. Attorney (Miami, Florida):

  • Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, [and a gang of other law enforcement notables] announce [] guilty pleas by defendants Louis Gendason, 42, of Delray Beach, FL; Kimberly Mackey, 46, of Pittsburgh, PA; and John Incandela, 24, Palm Beach, FL.

  • The defendants were charged in a Criminal Information with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, for their participation in a $2.5 million Home Equity Conversion Mortgage (a.k.a. reverse mortgage) fraud scheme. The remaining defendant, Marcos Echeverria, is scheduled to appear in court on August 10, 2011.


  • As a [] part of the conspiracy, defendant Kimberly Mackey, a licensed title agent and proprietor of Real Estate One Land Services, Inc. (REO), located in Pittsburgh, Pennsylvania, fraudulently closed the Genworth loans, failing to pay off the borrowers’ existing mortgage loans.

  • Genworth wired the loan proceeds to Mackey as the designated closing agent for 1st Continental. Mackey attempted to conceal the fraudulent loan closings by preparing false HUD-1 settlement documents that showed that the existing mortgages had, in fact, been paid off. Between May 2009 and November 2010, Mackey received loan proceeds from Genworth totaling $2,572,813.19.

  • Mackey fraudulently diverted at least $988,086.33 to a bank account controlled by Incandela and Gendason, who used this money for their personal benefit.

For the U.S. Attorney press release, see Two Loan Officers And A Title Agent Charged In $2.5 Million Reverse Mortgage And Loan Modification Scheme Plead Guilt.

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