According to John E. Murphy, acting U.S. Attorney for the Western District of Texas, Rosario Divins was convicted in June of seven counts each of criminal contempt and mail fraud. The jury found that since January 2000, Divins engaged in a fraudulent foreclosure prevention scheme.

Divins continued to implement her scheme despite three separate sanctions from the U.S. Bankruptcy Court for the Western District of Texas ordering her to stop misrepresenting herself and making false promises to her clients.

In addition to the prison term, U.S. District Judge Fred Biery ordered that Divins pay $83,600 restitution to her victims.

Rosario Divins, a self-proclaimed foreclosure prevention specialist from San Antonio, was sentenced to 350 months in federal prison, followed by three years of supervised release, for criminal contempt and mail fraud.

Testimony during the three-day trial revealed that Divins collected more than $80,000 in cash from individuals in desperate financial situations who responded to her mail-out offering to stop their residential foreclosures.

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According to John J. Tuchi, interim U.S. attorney for the District of Arizona, participants in a real estate scheme recruited unqualified straw borrowers, submitted fraudulent loan applications on their behalf, obtained mortgage loans in excess of the selling price and then took the excess amount of the loans out through escrow.

Mario Bernadel, a real estate investor from Phoenix, has been convicted of running a mortgage fraud scheme involving at least 32 residential properties in the greater Phoenix area.  Bernadel is the 20th defendant to date who has been convicted. U.S. District Judge Stephen M. McNamee set sentencing for late November.

Bernadel recruited and trained mortgage brokers, straw buyers and an escrow officer in the scheme and, following the funding of the loans, received cash back.  Seven other co-conspirators were also charged and have pleaded guilty and await sentencing.

The homes purchased through the scheme have been foreclosed or sold at a loss. The scheme resulted in $20 million in loans obtained by fraud and a loss of more than $2 million.

Bernadel’s conviction is part of “Operation Cash Back,” in which 40 defendants were indicted and arrested.

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These guys have a great take on this whole situation.  The government beg to keep secret what we are spending money on, yet are instantly happy to release any national secrets which help defend our country.

So, these banks, that are in such poor shape that they have to sell themselves to the federal government for bailout money, are worried that people will know what they did?  What’s next?  Maybe the Treasury should ask for that too.

This was all caused by the bank legislation that the liberals passed under Clinton, forcing banks to take home loans from people who couldn’t pay those loans, so that "everyone could have a house". Idiots.

Now it seems the FEDS don’t want you to know.

Fed urges secrecy on banks in bailout programs

* Fed urges judge not to enforce order pending appeal

* Banks say disclosure could cause loss of confidence

By Jonathan Stempel

NEW YORK, Aug 27 (Reuters) – The U.S. Federal Reserve asked a federal judge not to enforce her order that it reveal the names of the banks that have participated in its emergency lending programs and the sums they received, saying such disclosure would threaten the companies and the economy.

The central bank filed its request on Wednesday, two days after Chief Judge Loretta Preska of the U.S. District Court in Manhattan ruled in favor of Bloomberg News, which had sought information under the federal Freedom of Information Act.

Preska said the Fed failed to show that revealing the names would stigmatize the banks and result in "imminent competitive harm." The Fed asked the judge not to require disclosure while it readies an appeal.

"Immediate release of these documents will cause irreparable harm to these institutions and to the board’s ability to effectively manage the current, and any future, financial crisis," the central bank argued.

It added that the public interest favors a delay, citing a potential for "significant harms that could befall not only private companies, but the economy as a whole" if the information were disclosed.

The Clearing House Association LLC, which represents banks, in a separate filing supported the Fed’s call for a delay. It said speculation that banks’ liquidity is drying up could cause runs on deposits, and trading partners to demand collateral.

"Survival can depend on the ephemeral nature of public confidence," Clearing House general counsel Norman Nelson wrote. "Experience in the banking industry has shown that when customers and market participants hear negative rumors about a bank, negative consequences inevitably flow."

In other words, con the people and lull them into a false sense of confidence while you pull the rug out from under them and rob them blind.

Fed Begs for Secrecy on Failed Bank Bail Out – Atlas Shrugs

According to U.S. Attorney for the Eastern District of Michigan, Terrence Berg, in 2007 James Whitaker’s mortgage holder, Deutsche Bank, began foreclosure proceedings on a $970,000 mortgage Whitaker had obtained on the residence he occupied. However, he held title to the property in his sister-in-law’s name.

When the bank began eviction proceedings to take possession of the property, Whitaker had a bankruptcy petition preparer file several bankruptcy petitions in his sister-in-law’s name to halt eviction action. By doing this, the value of the property substantially decreased.

Whitaker, a former Orchard Lake, Mich., resident, pleaded guilty before U.S. District Judge Bernard A. Friedman to filing fraudulent bankruptcy petitions to defraud his mortgage lender and forestall foreclosure on his mortgage and take possession of his property. Sentencing for Mr. Whitaker is scheduled for Nov. 17, 2009.

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Roland Smith, 41, pleaded guilty before U.S. District Chief Judge Garrett E. Brown, Jr., to one-count Information that charges him with bankruptcy fraud. 

According to Ralph J. Marra, acting United States Attorney for the District of New Jersey, on Oct. 31, 2003, Smith obtained a $137,750 mortgage loan using a false name and social security number. Smith admitted that on the loan application for the Jersey City property, he indicated that his name was “Ronald Smith.”

Later on Smith defaulted on the mortgage payments and foreclosure proceedings commenced by the mortgage lender. Smith filed a bankruptcy petition under the false name and social security number in an attempt to reorganize and discharge the fraudulently-obtained debt. 

Judge Brown continued the defendant’s release on a $150,000 bond pending sentencing, which is scheduled for Dec 7, 2009

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