Multi-Million Dollar Mortgage Fraud Scheme Verdicts – GUILTY! Austin, Texas Jury Finds Five Guilty

Every choice has a consequence. The rampant spread of mortgage fraud is no different. Unethical practices and outright blatant fraud brought a guilty verdict to several Texas area individuals.

gavel_medium.jpg

  • Cornelius Robinson, age 47, of Austin, Texas, who was the leader and organizer of the fraud scheme. Robinson was convicted of conspiracy to make false statements related to a loan, conspiracy to commit wire fraud, five substantive counts of wire fraud, 9 substantive counts of false statements related to a loan, one count of aiding and abetting the receipt of commissions or gifts from loans by a bank employee, conspiracy to commit money laundering and 7 substantive counts of money laundering.
  • Michael Breon, age 39, formerly of Austin and a current resident of McKinney, Texas, and a straw purchaser. Breon was convicted of conspiracy to make false statements related to a loan, one count of wire fraud and one count of conspiracy to commit money laundering. Breon, a licensed loan officer and mortgage broker, was employed by several different loan origination and mortgage companies during the conspiracy.
  • Sindu Sukumaran, age 36, wife of Michael Breon and a straw purchaser. Sukumaran was convicted of wire fraud.
  • Marlon Nathan Torres, age 45, of Hutto, Texas, a licensed real estate agent and buyer and seller of real estate in the Austin area. Torres was convicted of one count each of conspiracy to commit money laundering and money laundering.
  • Jeffrey Andre Wilkins, age 46, of Austin, a cousin of Cornelius Robinson and a straw purchaser. Wilkins was convicted of one count each of conspiracy to make false statements related to a loan, conspiracy to commit wire fraud, false statement related to a loan, conspiracy to commit money laundering and money laundering.

fraud.jpg

Eleven co-defendants plead guilty to other mortgage fraud related charges. They are:

  • Silvia Seelig, age 45, of Austin, and wife of Cornelius Robinson who during the conspiracy, was a licensed real estate agent and a straw buyer;
  • George H. Watson, age 55, of Austin, a licensed attorney who specializes in real estate transactions. Watson served as the closing attorney on most of the real estate transactions described in the Indictment;
  • James Douglas Atwood, age 51, of Austin, Cornelius Robinson’s uncle and a straw buyer;
  • Doris Ann Hill, age 40, of Austin, a personal banker employed at Wells Fargo Bank. For a fee, Hill agreed to provide a false verification of deposit to loan underwriters in relation to three real estate transactions involving defendant Snead;
  • Julius Meyers Lofton, a 45-year-old licensed real estate agent living in Austin and a straw buyer;
  • Roy Rivers, age 52, of Austin, and a straw buyer;
  • Danielle Guice Rosas, age 40, of Austin, and a straw buyer;
  • Stanley Ma, age 27, of Honolulu, Hawaii and a straw buyer;
  • Leonard Brown, age 38, of Houston, Texas, who provided a false verification of employment in association with Onyx Consulting and defendant Ma;
  • Russell Snead, age 43, of the Seattle, Washington area and a straw buyer; and,
  • Leroy Williams, age 46, of Austin and a straw buyer.

According to the US Attorney’s office: From September 1999 to present, the defendants participated in a scheme to defraud mortgage lenders, including federally insured financial institutions, with regard to loans acquired to purchase 25 properties in the Austin and San Antonio area. The scheme centered upon the use of real estate “flips.” That is, the defendants purchased property at one price and would immediately sell, or “flip,” the property to a “straw buyer” at a higher price. In doing so, the mortgage lenders were deceived as to the true nature of the transaction and the financial status of the “straw buyer.” The straw buyers did not make the subsequent monthly mortgage payments
and all of the loans have gone into default. All of loans have been either foreclosed upon or are the subject of current foreclosure proceedings.

As previously reported on this blog – The Mostly Texas Sixteen have now seen the indictment turn into either guilty pleas or guilty verdicts. My guess is that most will face active prison sentences with the longest sentence being reserved for Cornelius Robinson who I suspect will face 10+ years – perhaps longer.

Every choice has a consequence. As a white collar crime and mortgage fraud speaker, I speak from first hand experience about the truth about consequences. Reality is – no one escapes the consequences of their choices. While Robinson and others may have avoided the consequences of their actions for a time, they did not avoid the consequences all together. One thing is for sure, you do reap what you sow.

As those who pleaded guilty will be sentenced on June 6th and those just found guilty will be sentenced on June 20th – they will soon know just what their fraudulent actions will bring to them in the form of prison consequences.

If anyone reading has any background on Robinson – feel free to comment as I study the behaviors and backgrounds of those who are accused of unethical conduct and white collar crime.

White Collar Crime and Business Ethics Speaker – Chuck Gallagher – signing off…

14 Responses to Multi-Million Dollar Mortgage Fraud Scheme Verdicts – GUILTY! Austin, Texas Jury Finds Five Guilty

  1. NA says:

    I know Cornelius Robinson very well. I sincerely hope nobody provides his background to you. He has suffered enough and will continue to suffer his entire life. Go find another lab rat to study.

  2. NA – Every choice has a consequence. I know as I spent time in federal prison for the choices I made. I suspect that Robinson will do the same. The question is – what was his motivation and background? He might be a wonderful human being, but he also broke the law. The hardest day of my life was admitting to my wife that I was an illusion – a liar and a thief. Yet, on that day I began to learn what real integrity was. The truth will set you free and you do reap what you sow. Sorry for Mr. Robinson and his family. Perhaps others will have the courage to step forward and share background. This can be done outside of the blog just send the information to my e-mail: chuck@chuckgallagher.com

  3. sgreen says:

    You know I have wanted to get into real estate as an investor to make money, it is amazing to me how some people can scheme, lie, cheat, etc there way. When the rest of us all seem to have the road blocks of truth that prevent us from becoming successful. I don’t feel bad for anyone in this group, you get what you deserve when you cheat, lie and steal. Go to prison all of them. What would someone call “suffering” in this case?

  4. sam says:

    hey…

    i don’t know cornelius, but i do know doris hill.

    as far as i’m concerned, cornelius is a fu*ng biatch.. he took serious advantage of dorisann, along with a few others. while dorisan should have known better, she was actually trying to help cornelius as she had a prior friendship with him. (or so she thought).

    so.. yeah, cornelius isn’t a “lab rat” as the previous poster said, and no he hasn’t been punished enough. when he’s getting punked as the bitch he is… maybe then he’ll get a taste of the screwing that he gave to others…

    f* the bitch….

    peace

  5. NA says:

    While I do not condone what Cornelius did. His sentencing has been pushed back due to open heart surgery, he will get what is due him. Silvia Seelig, his wife got 57 months, but Sam…come on dude or dudette. I was at the sentencing. I know what Doris did. She’s lucky her employer didnt press charges. Maybe she has not told you the entire truth. I know what each defendent did, whether or not they pleaded or went to trial. I know how long each person was sentenced or whether they got probation. I also know what each person who went to trial was convicted of. Your friend got a break as many others did for not being aware of what Cornelius, his wife and attorney was up to. Judge Sparks was very fair in his sentencing.

    For the record, the jerk is no stranger to incarceration and I sincerely doubt he’ll get punked although he deserves it. Trust me…he can take care of himself. He’s from the streets and one step from being a thug. As you can see, the stress is affecting his health. He has already had one heart surgery now he has advanced to open heart surgery. The guy probably will not live long enough to serve his entire sentence whatever it may be.

  6. sam says:

    hey na…

    yeah.. i know the guy’s a thug.

    but like i said. dee never got a dime. she was trying to help the guy, based on a previous relationship. except she didn’t know he was married at the time.

    the thug should rot in hell i say..

    peace…

    • a friend says:

      this so called dee,she knew what was going on,and she also knew he was married.there was no way in hell cornelius was going to leave a classy woman for a trashy whore like dee.she as well got what she deserved……..nothing.

  7. Cordelia Robinson says:

    I hate it when people have uninformed opinions. I think it’s only fair to look at both sides of any story, any claim, or any so called “facts” and determine from both from your opinion and the information ,what is closest to the truth. If someone doesn’t like my opinion, enlighten me, please. Sam, Dorris was a liscenced banker, and a big girl, no, a grown ass woman. She’d know before anyone what she could or couldn’t do. Ultimately she put herself into this terrible situation. For the loser who thinks he actually knows anything about my dad, Mr. NA, the first and only time he went to jail was for fighting (and significantly harming) a man in the Army. But before you make judgements, why did this happen? What would you do if someone physically assaulted your girl friend and put a gun up to you when you tried to defend her? Nothing? Ok, then you said he had two heart surgerys, it was one. And it was because of something he was born with. He did have spinal surgey before the heart surgery (ranch accident). Thug?! Ha ha ha. If you knew my dad or even talked to him, you’d know he’s a very classy man. “Thug” would be the furthest thing from your mind, and quiet frankly it’s funny to even hear someone use that word in connection with him. And Mr. Gallagher, my father is a wonderful man. He’s always been there for my family and I. Even people he doesn’t know he likes to help them. When my friends family was having hard times, he helped them more than any one could. When ever my siblings (not his biological kids) needed him, he was there. For most who know him, and needed him, he was there, always. He’s sweet, kind, loving, and the greatest man in the world. Does he have his fault, like everyone else, yes. Some would label him as charming, others (years ago) a ladies man, but a good person. My dad was sentenced to twenty-eight years in prison. Thats basically life in prison for a man his age. I’m sure some of you watch those shows on t.v . like “Snapped” etc. Tell me how some people (and there alot) can get (way) less years in prison for murder, not accidentally killing someone, cold murder, and my dad got 28 yrs. for money no one’s going to really miss. That shows something about our government (and some/most of the people in it). Money is more important than life. Is that ethical? Is that right? The people in this case, all of them, wanted to get money so they did what they did (thinking either it was ok or thinking they wouldn’t get caught), yes that goes for Ms Doris too, and Judge Sparks made my dad responsible for all of them. That is not fair! My father didn’t sign any documents (for the loans etc), he advised them about the homes/ loans and these people acted accordingly. He didn’t put a gun to their head and make them do it. They chose to do what they did. And this is the result money, and trouble with the law (parole, jail time). All these people are not only grown but old ass adults, who made a choice and are suffering for it. But how much should they suffer? Is it right the amount of suffering they have to endure for what they did. Shoot during my dads trial I looked up stated loans (you sya how much you make, and they don’t check the info. given) and applied for them to see what would happen, and they let me! Those loan only encourage people to lie to get the loan. In fact alot of the people letting me do the application openly refered to them as liar loans. Is it illegal to get a “liar loan” if it’s legal, if they’re constantly advertising for it? The person pays a higher interset for being able to lie on his loan….is that ethical? Is that right? Obviously it was? My dad is a good man. If only you knew him you’d see. I love him. I miss him. He doesn’t deserve 28 years in prison when murderers are getting ten. Is he worse than a murderer? Please enlighten me.

  8. missy says:

    Interesting, I just found out about this story. I’m surprised and shocked by the various sentences. I was in real estate and was approached serveral times to be involved in this very thing. I quickly ran the other way and save bad call by the persons number. I know cornelius from childhood he was called NeNe. I guess he grow out of that. What a heart felt message from his child. No all cases are not created equal. I’m surprised however how you said the money wouldn’t be missed. I’m sure banks have insurance for mortage fraud or liar loans. But what about the rest of the people in the neighborhood where these 33 houses are located. There property was just depreicated by your Dad the good person by thousands of dollars. No he didn’t sign any papers he just advised on loans and properties. But follow the money trail, his idea, his group, he received the majority of the money. I was in a meeting years ago with other realtors and the speaker was a FBI agents saying they created a task force just for mortage fraud here in TExas because it is crazy. When you decide to do something that is illegal you have also decided that you family is not that important. Because they wanted money. Money was more important to them. No he is no angel. I remember this family really well. A study needs to be done to recognize illegal behavior before it reaches middle school.

  9. FOG says:

    I also attended the sentencing of these crooks and I’m shocked at the lack of oversight given to several of these felons now that the majority are out of prison.

    For example, George Watson served his very short sentence and is now, ironically, working for a law firm in San Antonio whose main client is a bank. He also is involved with another shady group doing real estate deals involving house-flipping. Either the Federal Probation Dept is incompetent or they just don’t give a damn. I have to believe it’s the former.

    • Concerned Texan says:

      That’s interesting because I was at the sentencing that day, too. The judge looked at George and told him he was going to be disbarred. I know at least one of the other 5 who plead not guilty and convicted is out doing shady deals again. Why aren’t the feds doing anything to keep these scumbags away from unsuspecting law-abiding citizens??

  10. Little Zab says:

    I have great empathy for Cordelia Robinson and the rest of the Robinson family because no child deserves to grow up without loving parents and a network of family support. I knew NeNe as well as some of the other individuals who were apart of this mortgage fraud scheme. As a kid growing up in Montopolis I always saw Cornelius Robinson come back to the neighborhood in a nice late model car that may not have been brand new but you knew he had a fetish for nice things and the good life that involved making some paper. He was different from Roy and Ray Robinson and other family members, more ambitious needless to say and Roy had a barbecue spot right in the heart of Montopolis. I guess I am saying if you have your own barbecue spot that’s ambition coming from where I’m from, whether you always run out of potato salad or beans. Roy’s was our spot and like anyone else in Prayer town (Montopolis) we were all family. To Cordelia, he is all those wonderful things you say he is to you. I suspect my daughter will say the same wonderful things about me because she thinks the world of me. With that being said I think the world of her and I refuse to not be apart of her life so GREED is not an option and neither is PRISON. Too many people suffered from this so called white collar crime, not just the people involved but their families just like Cordelia and other siblings and my relative who went to prison along with NeNe and his children suffered. It was selfish of all parties involved trying to make money. This is why the bible quotes ‘ money is the root of all evil’! The crimes that are committed to get money is the root of evil. Cornelius Robinson has a very smart business acumen to go along with charm, he could have been anything in the world if he used it in a legal way. S. Green aka Steve Green who talked about suffering in an earlier blog would be a great example how to make some paper in a positive way. Gaston barbershop owner then gets into real estate and has a feel for being an entrepreneur. Too bad coming from Montopolis I saw more bad intentions from guys that were older than me with good sense than I saw guys with a positive outlook to get out and do some good.
    Like the Ghetto Boys said back then, the World is a Ghetto. Meaning in the black communities where there is lower income and public housing, crime is seconds away.

  11. Chuck, who gives a crap about a couple of low-level, low-life people scamming like this. It amounts to a gnat on an elephant. The real scum are the people who traded away TRILLIONS as if it was a casino using OUR money! Get real man. Greed, no kidding, fraud, heck yes, deserves prison time – you bet. But where did all the bank execs, market manipulators, and yes politicians who swam in oceans of cash wind up? At the trough for a second helping. It’s all happening again – loose doc requirements and lower credit/downpayment requirements. We’re getting suckered into it again. The list of defendants here will likely never get the chance to scam anyone. What about the banks? They are pulling our pants down again.

    • Concerned Texan says:

      You are wrong there. I know two on the list who still are scamming law-abiding citizens, and no one is doing anything about it. Believe me, I’ve complained about it before. Seems there are bigger fish to fry.

      .

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: