FEDERAL

poor financial condition, Appalachian was closed
on March 19, 2010, and FDIC was appointed
as receiver. At that time, Appalachian owed the
FHLBank of Atlanta approximately $67 million.
This was a joint investigation with the FBI, FDIC
Office of Inspector General (FDIC-OIG), and
SIGTARP.
Property Management Scheme
The wave of foreclosures following the housing crisis
left the GSEs holding a large inventory of REO.
To minimize losses associated with REO, the GSEs
rely heavily on contractors to secure, maintain and
repair, price, and ultimately sell their properties. In
a property management scheme, contractors overbill
for work performed or bill for work not performed.
Mortgage Servicer Falsifies Property Inspections,
Tampa, Florida
On July 18, 2013, in the U.S. District Court for the
Middle District of Florida, Tammy Roaderick pled
guilty to conspiracy to commit wire fraud.
From about March 2007 to December 2009,
Roaderick, Vice President of American Mortgage
Field Services, ordered and oversaw the submission
to Bank of America of fraudulent property inspection
reports for inspections of foreclosed properties for
which American Mortgage Field Services was paid
but never performed. The enterprises reimbursed
Bank of America, as their servicer, for the fake
inspections. As part of her plea deal, Roaderick also
agreed to forfeit $2.4 million to Bank of America and
the enterprises. The overall loss for the conspiracy,
involving company president, Dean Counce, and
other employees, was estimated at $12.8 million.
This was a joint investigation with HUD-OIG and
the Secret Service.
Condo Conversion and Builder Bailout
Schemes
These schemes begin with sellers or developers
seeking out investors with good credit who want
low-risk investment opportunities. Investors are
offered deals on properties with no money down
and other lucrative incentives, such as cash back and
guaranteed and immediate rent collection. To fund
these incentives, sellers use complicit appraisers to
inflate the sales price. The incentives are not disclosed
to lenders, who are defrauded into making loans far
exceeding property values. When the properties go
into foreclosure, lenders suffer large losses.
Condo Conversion, West Palm Beach, Florida
On September 26, 2013, in the U.S. District Court
for the Southern District of Florida, an information
was filed, charging Jose Aller and Ernesto Rodriguez
with conspiracy to commit bank fraud.
The information alleges that between February
and December 2008, Aller and Rodriguez, former
co-owners of JAER Guaranteed Investments,
conspired with others to provide buyers of
condominiums at Kensington of Royal Palm Beach
with incentives that were not disclosed on the
HUD-1 statements that were submitted as part of the
loan application and approval process. The allegedly
fraudulently induced mortgages were sold to Freddie
Mac by the originating lenders.
This was a joint investigation with the FBI.
Escrow Agent Pleads Guilty After Defrauding the
Enterprises, Los Angeles, California
On June 13, 2013, Jacqueline Burchell pled guilty
to conspiracy to commit bank and wire fraud in
the U.S. District Court for the Central District of
California.
Semiannual Report to the Congress • April 1, 2013–September 30, 2013 21