Mr. Hockfelder is not a new player to investment fraud according to court records Mr. Hockfelder was indicted in 2008 for his involvement in a mortgage fraud scheme in which seventeen million dollars was acquired through fraudulent loans from banks. The loans were acquired through family and friends and various real estate ventures.

Mr. Hockfelder used his family, friends and business associates’ to scam them out of millions of dollars through his fraudulent business deals. He continuously scammed those who believed he was a legitimate businessman.  Investment scams of this type of serial nature threaten the financial future of all the investors involved and leave nothing but victims behind according to District Attorney, Cyrus Vance.

Court documents on Mr. Hockfelder’s current indictment and his indictment in 2008 reveal that Mr. Hockfelder used the same scam in both scenarios. He represented himself as being under contract to with the seller in both the Sagamore Hotel on Lake George and the Peaks Resort and Spa in Telluride, Colorado. Mr. Hockfelder was a bidder in both projects but never was able to acquire financing in either deal. Mr. Hockfelder never revealed that information to the investors he acquired funds from. Investors that contacted Mr. Hockfelder requesting their funds back where assured that there funds were safe in a family trust. He provided investors with fraudulent documents reporting that family trust had over twenty six million dollars in it.

The funds that Mr. Hockfelder obtained from investors were used to maintain his extravagant life style. Investors were actually paying for Mr. Hockfelders personal drivers, his children’s private schools, private jets, business expenses and over three hundred thousand dollars for lawyers to defend his legal indictment from 2008. Investors were told that funds were going into an escrow account pending the closing of both deals and that if the deals did not close they would receive the return of their monies.

Mr. Hockfelder in the current indictment is charged with one count first degree grand larceny, four counts of second degree grand larceny, three counts of third degree grand larceny, nine counts of criminal possession of a forged instrument in the second degree, twelve counts of first degree identity theft and two counts of first degree scheme to defraud.

The counts against him in his original indictment from 2008 include six counts of grand larceny, two counts of second degree grand larceny, twenty four counts of second degree forgery, twenty four counts of first degree falsified business records, one count of first degree scheme to defraud and one count of first degree offering a false instrument for filing.

First degree grand larceny is punishable by up to twenty five years in prison, second degree grand larceny is punishable by up to fifteen years in prison, third degree is punishable by up to seven years in prison and first degree scheme to defraud is punishable by up to four years in prison.

The District Attorney advises that indictments are merely an allegation that a crime has been committed and that the defendant is considered innocent until proven guilty in a court of law.

Assistant prosecutor Nick Mehalco Jr. stated that seven four thousand dollars was seized from Mr. Young as part of the investigation and will be dispersed among the victims who can be identified.

Mr. Young admitted to working with several other individuals in a scheme to defraud mortgage lending institutions. He further admitted to hiring a female co-conspirator to forge tax returns in order to qualify a straw-buyer who did not qualify for the property.

Mr. Young admitted that he also worked with co-conspirators to defraud mortgage lending institutions by the use of inflated property values throughout the Jackson area. The properties were purchased and then allowed to go into foreclosure. Mr. Young purchased three properties and in one of the cases an appraiser valued the property at fifty nine thousand dollars and a straw buyer purchased it for ninety nine thousand dollars.

All individual conspirators in the case have been apprehended and are awaiting trial.

Mr. Young is scheduled to be sentenced on April 1st. He faces a maximum sentence of ten years for each count against him and a fifteen thousand dollar fine.

The conspirators used a method called flipping to obtain the funds from the mortgage institutions. They used the closing funds to pay themselves and as down payment on purchase transactions. The conspirators however ran out of funds to continue the flipping scheme and stopped making payments on the mortgage loans they had obtained. Three banks Washington Mutual, Impac Lending Group, and Loan City incurred over seven million dollars in losses.

The ten individuals indicted in the case are:

Yamil L. Herrera, age 38, from Miami;

Alain C. Hernandez, age 41, from Miami;

Ricelda M. Hernandez, age 44, from Miami;

Maria G. Herrera, age 40, from Miami;

Samantha Portales, age 42, from Miami;

Edel Martinez, age 37, from Miami;

Osiris Garcia, age 41, from Miami;

Silvio De Paz, age 46, from Miami;

Ana G. Blanco, age 35, from Hialeah; and

Luis R. Martinez, age 42, from Hialeah.

Scam Artists Request Upfront Fees, Property Title Transfers and Escrowed Mortgage Payments

SACRAMENTO – February 25, 2010 – US Loan Auditors announced today that they are endorsing California Attorney General Jerry Brown’s crack down on “phony loan audits” and “loan modification” scam artists by warning California families that scammers are out to steal their hard earned homes and money.

“It is a shame that people would setup a storefront and call themselves a foreclosure relief agency just to steal from local families,” said Shane Barker, one of the founders of US Loan Auditors. “It is absolutely critical that consumers do their research into the company they are working with and extensively check references before assuming a firm has experts. We have never done, and will never do loan modifications. Our audits are specially designed for attorneys to take right into court.”

US Loan Auditors is not a loan modification firm, but instead is specialized in using the science of forensic loan auditing to help victims of predatory lending, and their legal counsel, uncover violations during the loan documentation or loan origination process. Customers can rest assured that the principals of the firm have extensive mortgage industry experience and the company backs up its expertise by offering a free upfront consultation for their forensic audit services.

“Our audits are not performed with a loan modification in mind,” Barker said. “We do the forensic loan audit to help give homeowners the leverage they need in court, not for a loan modification. Beware of companies promising big results after illegally collecting a large upfront fee.”

Along with a large upfront fee, scam artists may request the transfer of the title of the house to the “rescue” firm; making the mortgage payments to the scammer instead of the lender; and even prey on people that sign paperwork without carefully reading the documents or having an attorney review them.

“Unfortunately, some people are becoming victims twice,” Barker said. “Please be aware of the warning signs of a scam artist and take steps to protect yourself, your home and your family from further risk.”

An estimated 80 percent of the homeowners with one or more of the following; adjustable loans, pick a payment or option ARMs, non speaking or limited English speaking, or stated loan transactions, may have been victims of predatory lending.

For more information about US Loan Auditors, or get a free initial consultation for your mortgage loan, please call 916-256-3991 or visit them online at www.usloanauditors.com.

Media Contact:

Shane Barker

2882 Prospect Park Drive, Suite 350

Sacramento, CA 95670

888-55-AUDIT

shane@usloanauditors.com

www.usloanauditors.com

Mr. Slama would only comment that the United States Attorney’s Office is also involved in the investigation and that several victims of the alleged crime have contacted both offices to report claims against Priority Search Inc. and principals.

The investigation into Priority Search Inc. was revealed in November of 2008 when several individual sellers of property complained publicly that Priority Search Inc. held money from buyers in purchase transactions that should have been used to pay off their individual mortgages after the sale; as well as outstanding property taxes.

Title companies in purchase transactions place monies in an escrow account to ensure that the monies are distributed to the sellers or the sellers bank that hold the sellers mortgage once the monies are received from the buyers at the time of closing.

Michael Bogdon, from Rice Township was one of those buyers that became a victim in this scheme. Mr. Bogdon purchased a property in Rice Township and held his closing with Priority Search Inc.. The money to fund the closing were given to Priority Search Inc. on August 22, 2008 and was to distributed to the sellers mortgage lending institution to pay off the sellers mortgage and property taxes. Priority Search Inc. was chosen by the listing agent in the transaction for the title services.

Mr. Bogdon was shocked when the seller of the property showed up on his door step in November to tell him that the mortgage had not been paid. The sellers in this case were retirees who now had mortgages on both the properties they sold and the property they purchased. Mr. Bogdon concerned that the property would go into foreclosure due to non- payment of the sellers mortgage which would leave him with a mortgage and no property. Mr. Bogdon used his property insurance to pay off the sellers mortgage as he had purchased the property insurance Investor Title Insurance Co. The sellers’ mortgage was paid off later that fall and they were able to finally get the property taxes paid in January of this year. Mr. Bogdon was reveal when the sellers’ mortgage was finally paid as he no longer feared that he would loss the home he purchased.

Investor Title Insurance has filed a claim against Priority Search Inc. in Luzerne County and its principals Elizabeth Sichler and Robert E. Marsh. The Judge has ordered the company and its principals to turn over all its computer records, paper documents to the insurance company.

Robert Marsh, the company’s secretary and vice president filed a claim in which he is arguing that he should not be included in the law suit. Mr. Marsh is an attorney and claims that he is the victim who lost his investment in Priority Search Inc. Mr. Marsh’s lawyers claim that Mr. Marsh is a highly respected member of the Bar Association and was not an object of the alleged criminal investigation. They claim that Mr. Marsh simply had a relationship with a corporate entity.

Priority Search Inc.’s President and treasurer, Elizabeth Sichler, from Harvey Lake stepped down as Vice Chairwoman of the country Republican Party Organization when the scandal surrounding Priority Search Inc. became public.

Jonathan Comitz, Attorney from Forty Fort who is currently representing Sichler and Priority Search Inc. in civil actions would not comment on the on-going legal actions. Marc Neff, from Philadelphia and is Sichler’s criminal defense attorney has also declined to comment.

Bill Jones, a seller and one of the victims in this alleged scheme was able to obtain the pay off of his mortgage by using the buyers title insurance, however according to his attorney John Dean, from Scranton, they are seeking to recoup legal fees and other court costs from Sichler and Priority Search Inc. Mr. Jones in order to get the mortgage paid had to seek legal action against the buyers which including seeking eviction of the buyers from the home before the buyers insurance would pay. Mr. Jones sold the home for one thousand seventy-one thousand dollars which the buyers gave to Priority Search Inc..  Attorney Dean stated that they had to take the action as Mr. Jones cannot put in a claim on a title policy he didn’t own. The buyers’ policy is owned by the buyer and not the seller, which makes schemes like this so difficult to satisfy.

Mr. Dean stated that his office is receiving several calls from lawyers and individual sellers who are looking for advice on how to reclaim their funds. He further stated that many are simply doing nothing and hoping for the best.

County records reveal that The United States Department of Revenue filed liens against Priority Search Inc. and Elizabeth Sichler in November of 2009 seeking six thousand two hundred dollars from Priority Search Inc. and two thousand one hundred dollars from Mrs. Sichler.

The United States Department of Labor and Industry’s Unemployment compensation Fund also filed liens last year. The liens total thirty thousand six hundred dollars for unpaid unemployment compensation contributions, interest and penalties

The Internal Revenue Service is seeking sixteen thousand five hundred dollars from Mrs. Sichler in a federal tax lien suit they filed last year.

Priority Search Inc. and Mrs. Sichler also have a judgment that was filed against them by Yellow Book Sales and Distribution Co. for eight thousand six hundred dollars.

Marilyn Morio filed a judgment against Mrs. Sichler last year in the amount of one thousand two hundred dollars.

The building in which Priority Search Inc. did business was sold in September by Pierce Street Associates LLC according to county records. Pierce Street Associates is owned by Robert Marsh.

The conspirators according to the indictment recruited straw buyers and sought out properties for the straw buyers to purchase using their good credit on residential mortgage loan applications. The straw buyers were paid cash for the use of their name and credit. The straw buyers were also told that the properties would be rented out of a year and then the properties would be sold for a profit. The values of the properties were inflated to accomplish this profit. The straw buyers were also told that the conspirators would make the monthly payments on the properties; find renters to live in the homes and that the properties would be taken out of the straw buyers name after a project period of time.

The conspirators submitted fraudulent income, assets and often liabilities if they could manage it to the mortgage lending institutions. Mortgage applications were often submitted with information stating that the straw buyer was receiving rent on the home or that the straw buyer intended to occupy the property. The mortgage institutions used that information to lend the monies to the conspirators.

The conspirator also set up fraudulent construction companies and prepared fraudulent invoices from those companies to submit to title companies. The title companies believing that the invoices were official paid out the invoices at the time of the mortgage closings.

No improvement was done to any of the property involved.

The conspirators are facing a maximum sentence for each wire fraud and money laundering count of up to twenty years in prison in addition to fines.

The case will be heard by United States District Judge Lynn N. Hughes in March of 2010.

Ms. Yeung along with two mortgage brokers between December 2004 and January 2007 recruited five straw buyers to use their good credit and identities to submit mortgage loan applications to lending institutions. The loans were granted and the fraud resulted in an approximate six million five hundred thousand dollar scam. Trail documents revealed that Ms. Yeung did not submit mortgage loan applications under her own applications under her own name due to her bad credit.

Ms. Yeung in addition to recruiting straw buyers refinanced her Balboa Terrace property by fraudulent means in order to acquire cash to pay off existing loans. She obtained over six hundred thousand dollars via this method of fraud.

The scheme to defraud involved submitting fraudulent mortgage loan applications and fraudulent supporting loan documentation to Washington Mutual and J.P. Morgan Chase. The applications submitted stated inflated income, assets, and credit positions of the straw buyers recruited by Ms. Yeung. Ms. Yeung in addition to these submissions induced another individual to forge letters from Hang Sang Bank that showed the straw buyers had more assets in their accounts then they did. Lending institutions used that information to fund the mortgage loans. Ms. Yeung had induced the straw buyers and the bank represents with monitory amounts of twenty to forty thousand dollars.

Witnesses at Mr. Yeung’s trail stated that she provided them with business cards that contained the title “Honorable Lady of San Francisco”.  She promised to further their careers in political circles by using her political connections in the San Francisco area. Ms. Yeung also tampered with the witness by telling the straw buyers to lie to the Federal Bureau of Investigation Investigators.

Ms. Yeung, age 58, from Mountain View, California was original indicted on April 9, 2009. The two mortgage brokers in the case were charged in the conspiracy. They both pleaded guilty to wire fraud and are awaiting sentencing.

United States Attorney, Joseph Russoniello stated that the conviction against Ms. Yeung’s should be taken as an affirmation of the efforts to arrest and prosecute mortgage fraud. Mortgage fraud weakened our economic system and left irreparable damage to households, neighborhoods, and communities. Brokers with no scruples often engage borrowers who know better to exaggerate their qualifications for loans that they cannot afford on a property that is been given an inflated value. We owe it to the property owners who stay in their homes and struggle to meet their monthly payments to flush out the perpetrators and abettors of mortgage fraud. This office continues to work with the Federal Bureau of Investigation and other agencies to bring these individuals who commit fraud to justice.