MAN WHO RECRUITED REAL ESTATE PROS TO CARRY OUT MORTGAGE FRAUD GUILTY

By
Education & Training with The Real Estate Mart of Tennessee, Inc. TN LIC# 290452

Federal Jury Finds Jacksonville Man Guilty of Mortgage Fraud

U.S. Attorney’s Office October 11, 2012
  • Middle District of Florida (904) 301-6300
 

JACKSONVILLE—U.S. Attorney Robert E. O’Neill announces that a federal jury today found Kessler Holzendorf (43, Jacksonville) guilty of conspiracy, multiple counts of mail fraud, and multiple counts of wire fraud in connection with his involvement in a large-scale mortgage fraud scheme. Holzendorf faces a maximum penalty of 20 years in federal prison for each of the 31 counts. His sentencing hearing is scheduled for January 28, 2013. Holzendorf was indicted on April 13, 2011.

According to testimony and evidence presented at trial, Holzendorf was one of the masterminds behind a complex scheme to defraud a number of mortgage lenders on loans for high-end properties in the Jacksonville area, including a number of homes in the Bartram Springs subdivision.

The scheme involved Holzendorf and others recruiting real estate professionals as investors who, with Holzenorf’s assistance, submitted false loan applications and inflated purchase prices for the sales.

The loan applications included inflated sales prices, some false claims that investors were occupying the properties as their personal residences, and other false claims regarding the investors’ employment status and income levels.

For each of the properties, lenders were tricked into believing that home improvements, usually noted as swimming pools, were being made to the properties.

In fact, no improvements were ever made.

Funds (ranging from $50,000 to $250,000) for these improvements were paid through title companies for sham invoices payable to a sham company (Home Improvements and Repair by Design), which was controlled by Holzendorf. Following the closing,

Holzendorf, who usually kept a fee, would return the funds to the buyers.

As a result of the scheme, the lenders were tricked into providing substantial sums of money to the buyers at closing.

The scheme also included a real estate agent and a mortgage company affiliated with Holzendorf. Evidence introduced at trial showed that Holzendorf and other conspirators obtained real estate commissions of more than $339,000, mortgage broker compensation of more than $189,000, and illegal kickbacks to buyers of more than $1.1 million.

In commenting on the verdict, United States Attorney O’Neill noted, “Our office remains committed to prosecuting those involved in these types of fraudulent crimes. Mortgage fraud continues to be a priority of the Department of Justice and our district.”

FBI Special Agent in Charge of the Jacksonville Field Office Michael Steinbach commented, “The FBI is committed to vigorously pursuing the perpetrators of mortgage fraud at every level, and these investigations remain one of our top national priorities.”

FDLE Special Agent in Charge of the Jacksonville Region, Dominick Pape, stated, “The partnership of all the agencies associated to this case has led to an outstanding result. This outcome should send a message to potential violators that mortgage fraud will not be tolerated in Northeast Florida.”

This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Mark Devereaux and Mac Heavener.

source: FBI
Posted by
Click The
Button
Below
Earth



David Saks


 


Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 

 

 


The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until c
onvicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site..
6. Http://activerain.trulia.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission, Eve Maxwell, Executive Director.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a licensed real estate broker in the State of Tennessee affiliated as an independent contractor with The Real Estate Mart Of Tennessee, Inc. 4040 North Watkins, Suite 4, Memphis,Tennessee 38127 Phone(901)357-4663.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


Contact David Saks


Use this form to contact David

Please provide your contact information:

Name (required)
Organization
Street address
Address (cont.)
City
State/Province
Zip/Postal code
Country
Daytime Phone (optional)
Evening Phone
FAX
E-mail (optional)
URL
     
     

Comments:


 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Tennessee Shelby County Memphis
Groups:
Realtors®
Crime
Tags:
real estate fraud

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the lock to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
962,496
Greg Nino
RE/MAX Compass, formerly RE/MAX WHP - Houston, TX
Houston, Texas

I know this isn't your content, but I love the outline of events and what happened. We should alway remember what happens to those who try to game the system, kill Realtor repuations, defraud and lie.

Good stuff.

Oct 12, 2012 09:35 AM #1
Rainmaker
1,351,677
David Saks
The Real Estate Mart of Tennessee, Inc. - Memphis, TN
Memphis, Tennessee

Nearly all of the crime blog entries are forwarded from the FBI, Greg, and there are hundreds of them in my index.

Thousands of licensees have resigned from the real estate business, and continue to resign daily, not just because of the economic factors, but because of deceit and corruption carried out at levels never before witnessed in history.

There's more corruptuion in the real estate business than in any other profession in the world, excepting medicine, prostitution and wall street, and it's impact is ripping the nation apart.

It cannot be denied.

The time has arrived to do something about it.

Thanks for your comments.

Oct 12, 2012 10:01 AM #2
Show All Comments
Rainmaker
1,351,677

David Saks

Memphis, Tennessee
ActiveRain Can & Will Enrich Your Life !
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the chair to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information