FEDERAL

fraud and wire fraud involving a financial institution
in the same court.
From approximately 2002 until 2007, Totten was
a loan officer who acted as an unlicensed mortgage
broker (operating under broker licenses held by
others). During this time, Totten owned or operated
Integrated Home Loans, Integrated Lending, Money
World, and other entities and generated business
by advertising on television and other media. In
2006, Totten allegedly obtained $2.2 million in
mortgage loans on behalf of a single straw buyer by
allegedly using false information on the straw buyer’s
loan applications and then collected kickbacks and
commissions on the sales. Lockard, a loan processor,
worked for Totten from January 2006 through
June 2007, during which time she processed these
and other fraudulent loans. Lockard created and
processed fraudulent loan applications and fraudulent
supporting documents, such as false Certified Public
Accountant letters, false bank statements, and false
verification of deposit forms. She submitted them
to mortgage lenders including FHLBank members.
Many of the loans subsequently defaulted, causing
the mortgage lenders and secondary purchasers,
including the enterprises, to suffer significant losses as
a result of the conspiracy.
This was a joint investigation with the FBI, IRS-CI,
and U.S. Attorney’s Office for the Southern District
of California.
Loan Officer Sentenced, Annandale, Virginia
On July 30, 2013, in the U.S. District Court for
the Eastern District of Virginia, Rina Delgado was
sentenced to 12 months of incarceration and 3 years
of supervised release. She was also ordered to pay
$1,160,611 in restitution. She previously pled guilty
to conspiracy to commit wire fraud.
in Annandale, Virginia. In this capacity, she placed
false information in loan applications and used false
documents, such as W-2 forms, to qualify otherwise
unqualified applicants for loans. The enterprises
suffered losses exceeding $800,000 as a result of
Delgado’s conduct.
This was a joint investigation with the FBI and was
prosecuted with assistance from an OIG investigative
counsel.
Servicer Allegedly Diverted Over $18 Million
Owed to the Enterprises, Ft. Lauderdale, Florida
On July 11, 2013, in the U.S. District Court for the
Southern District of Florida, a criminal information
was filed against Patrick Mansell, alleging conspiracy
to commit wire fraud. Mansell pled guilty on
August 5, 2013.
Starting in April 2007, Mansell used his position as
vice president, secretary, and director of Coastal States
Mortgage Corporation to defraud the enterprises.
Through February 2012, Coastal States withheld
mortgage loan payoffs due to the enterprises for
extended periods. Coastal States would use these
funds for its own business purposes and to make
monthly mortgage payments on paid-off loans,
misrepresenting them as performing loans. Payoffs
fraudulently retained by Coastal States were also used
to remit funds due to the enterprises for previously
withheld payoffs. Daily and monthly servicing reports
were supplied to the enterprises containing false
information and altered loan-identifying numbers,
which enabled the scheme to go undetected. The
enterprises lost more than $18 million as a result.
The Florida Office of Financial Regulation provided
assistance to OIG during the initial stages of the
investigation.
From September 2006 until August 2007, Delgado
worked as a loan officer with SunTrust Mortgage
Semiannual Report to the Congress • April 1, 2013–September 30, 2013 23