Mortgage Company Owner Charged in Massive Fraud Case
24 people face charges in an identity theft ring where some participants, including a mortgage company owner, were involved in a mortgage fraud scheme on 180 properties.  The fraud scheme may end up costing mortgage lenders as much as $11 million. Philadelphia prosecutors allege that of the group of 24 involved, 10 people led by Allen Smith were charged with aggravated identity theft and bank fraud for using the personal information of hundreds of Commerce Bank, M&T Bank, PNC Bank, and Wachovia Bank customers.

Mortgage Company Owner Charged in Massive Fraud Case
July 31, 2006 - By Staff Writer, Originator Times

STUART, FL - 24 people face charges in an identity theft ring where some participants, including a mortgage company owner, were involved in a mortgage fraud scheme on 180 properties.  The fraud scheme may end up costing mortgage lenders as much as $11 million.

Philadelphia prosecutors allege that of the group of 24 involved, 10 people led by Allen Smith were charged with aggravated identity theft and bank fraud for using the personal information of hundreds of Commerce Bank, M&T Bank, PNC Bank, and Wachovia Bank customers.  The group used social security numbers and bank account numbers to cash bogus checks and withdraw money from bank customers' accounts.  The group gained access to consumers’ personal information from Michael Merin who was a collection agency representative at Select Financial.

10 people were also charged with identity fraud and wire fraud for their part in a mortgage scheme.  A group led by real estate investor Mahn Huu Doan, who used the name Bruce Doan, bought 180 properties in Philadelphia by using stolen identities and bogus documents to secure loans.  Most of the loans were originated through Encore Mortgage Services.  The owner of Encore Mortgage Services, Vincent Sirolli, is also charged in the case. 

Prosecutors allege that Sirolli and his employees processed applications they knew to be bogus.   Encore Mortgage Services is suspected of pocketing significant amounts of money at the closings with the help of real estate appraiser Ciriaco Gatta who inflated property values in order to maximize the mortgage company’s and the buyer's profits. 
Almost all of the properties went into foreclosure.
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