Page 1 of 22 AFFIDAVIT IN SUPPORT OF ARREST WARRANTS ...

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property ownership and identified relevant bank records of the individuals and/or companies.Your affiant has also subpoenaed and examined bank records pertaining to loan files.Your affiant has participated in this investigation and has personally interviewed those whoseinformation is set forth herein, and/or have reviewed reports of interviews or other investigativeinformation prepared by others that may appear in this affidavit.As a result of your Affiant’s personal participation in this investigation and/or reports, oral andwritten, your affiant is familiar with the circumstances of the offenses described in theAFFIDAVIT.On the bases of your affiant’s training and experience, you’re Affiant states the facts contained inthis Affidavit. Your Affiant has identified the aforementioned subjects as active participants inan ongoing criminal enterprise used to defraud numerous financial institutions.MORTGAGE TERMS‘Residential mortgage loan’ means a loan to extend credit made to a person, which loan issecured by a deed to secure debt, security deed, mortgage, security interest, deed of trust, orother document representing a security interest or lien upon any interest in one-to-four familyresidential property located in Florida including the renewal or refinancing of any such loan. Asin these listed mortgage loans they are referred to as HELOC which is a home equity line ofcredit. These HELOC loans are secured through the submission of a warranty deed declaringsecurity interest in the collateral property being represented. These warranty deeds are forgedand are submitted to the financial institutions declaring ownership of the property when noneexisted. The equity line of credit is determined based on the amount of equity available in thestated property. Through the embellishment of false & fraudulent appraising the manufacturingof property equity takes place. The financial institution using that appraisal information willassign an approved equity line of credit. Once the line of credit is approved and distributed theHELOC is funded for a short period of time and then becomes delinquent. As a result thefinancial institutions are forced to move against the properties under foreclosure proceedingsonly to find out that the original owners still own the effected property.‘Mortgage lending process’ means the process through which a person seeks or obtains aresidential mortgage loan including, but not limited to, solicitation, application, or origination,negotiation of terms, third party provider services, underwriting, signing and closing, andfunding of the loan. Documents involved in the mortgage lending process include, but are notlimited to, uniform residential loan applications, appraisal reports: HUD-1 settlement statements;supporting personal documentation for loan applications such as W-2 forms, verifications ofincome and employment, bank statements, tax returns, and payroll stubs; and any requireddisclosures.‘Pattern of residential mortgage fraud’ means one or more material misrepresentations, oromissions made during the mortgage lending process that involve to or more residentialproperties., which have the same or similar intents, results, accomplices, victims, or methods ofcommission or otherwise are interrelated by distinguishing characteristics.Page 4 of 22
‘Person’ means a natural person, corporation, company, Limited Liability Company,partnership, trustee, association, or any other entity.‘HUD-1 Settlement Statement means a form used by the settlement agent (also referred to as theclosing agent) to itemize all charges imposed upon the borrower and seller for the real estatetransaction. It gives each party a complete list of their incomingAnd outgoing funds disclosed to the lender. The form is ultimatelySubmitted to the lender by the closing agent prior to funding the loan.‘1003’ means the loan application filled out by the loan officer, employee of the mortgage brokercompany. The application contains the purported personal information, monthly income,employer information, credit history and assets he/she may have. This document is essential inthe loan process for the purpose of qualifying the borrower.GENERAL EXPLANATION OF THE MORTGAGE FRAUD SCHEMEEach mortgage fraud scheme contains some type of “material misstatement, misrepresentation,or omission relied upon by an underwriter or lender to fund, purchase or insure a loan. Thedefendants and their accomplices orchestrated a scheme to locate properties for sale in the SouthFlorida area. Thereafter, the accomplices fraudulently purchase the properties using strawbuyers, and received cash back at closings without the knowledge of the lender.STRAW BUYERS COLLABORATION IN THE SCHEMEA straw buyer is one who purchases property for another to conceal the identity of the realperpetrator. The straw buyer is usually compensated several thousands of dollars for the use ofname and credit information to perform this false purchase. Straw buyers are also used to signdocuments that contain false information. Such as a straw buyer willing to sign the 1103document (loan application) representing an embellished income in order to qualify for the loan.These straw buyers may also falsely represent their intent to occupy the property. If in the loanprocess, the straw buyer falsely represents that the source of the down payment or cash at closingcame from the straw buyer, this will constitute mortgage fraud. At times, defendantsorchestrating the scheme will make payments on the property long enough to sell the property ormake only one or two payments to disguise the fraud. Often, payments are made on theproperties with illicit funds attained from the Mortgage fraud.An example of such a scheme is when co-conspirators pay the owner’s asking price and thenfraudulently embellish the contract price by using two HUD-1 settlement sales contracts. This isperpetrated by conducting simultaneous closings without the lender’s knowledge. This schemeallows the co-conspirators to create the financial illusions of additional equity in the property.This instant equity however is then diverted to an undisclosed third party known as“cash back atclosing” in order for the person or persons to realize these fraudulent fundsDuring the loan approval process, the fraud subject provides the lender with false pay stubs, IRSform W-2s, verification of employment and verification of deposit forms in order to obtain thePage 5 of 22
Page 1 and 2: AFFIDAVIT IN SUPPORT OF ARREST WARR
Page 3: 229 Pelican Way Del Ray Beach, Flor
Page 7 and 8: submitted by the defendant. As a re
Page 9 and 10: West Palm Beach, FloridaRecorded: 1
Page 11 and 12: Loan # 0729600615 filed through Wac
Page 13 and 14: lending institutions in violation o
Page 15 and 16: from the owner Ms. Cheri Pulen of S
Page 17 and 18: This affiant issued a subpoena to F
Page 19 and 20: Exhibit # 52. Subject Joy Williams
Page 21 and 22: Exhibit # 596) $25,000.00 transferr

Page 1 of 22 AFFIDAVIT IN SUPPORT OF ARREST WARRANTS ...

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