Former Mortgage Broker Sentenced for Mortgage Fraud

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Education & Training with (retired) TN LIC# 290452

Former Mortgage Broker Sentenced for Mortgage Fraud

DAVENPORT, IA-Today, Mary Lee Reinking of Clinton, IA, a former mortgage broker with Crow Valley Mortgage in Bettendorf, Iowa, was sentenced by United States District Judge John A. Jarvey to five years' probation, including one-year home confinement, in connection with Reinking's previous guilty plea to one count of wire fraud. Reinking also was ordered to pay $97,343 in restitution.

Reinking and Natalie Long, another broker employed at Crow Valley Mortgage, assisted Darryl Hannken and Robert Herdrich in a scheme to defraud mortgage lenders Argent Mortgage and New Century Mortgage in connection with loans to purchase two rental properties in Davenport, Iowa. Reinking and Long, aware that Hanneken and Herdrich would divert some of the loan proceeds to their own pockets without lender knowledge, facilitated the scheme by acting as broker for Herdrich and Hanneken. Reinking and Long also submitted false information concerning the income and financial assets of Herdrich and Hanneken in order to qualify them for the loans.

This fraud was uncovered as part of a broader FBI investigation of fraudulent mortgage practices in connection with the purchases of dozens of rental properties in Davenport between 2004 and 2006. Thus far, two mortgage brokers, a real estate agent, and two property buyers have pleaded guilty to fraud charges resulting from this investigation. Another mortgage broker and an attorney have been charged and are awaiting trial.

This case was investigated by the FBI and prosecuted by the United States Attorney's Office, Southern District of Iowa

courtesy Federal Bureau of Investigation

United States Attorney's Office
Southern District of Iowa
Contact: (515) 473-9300

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David Saks



Time&Temp Memphis

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Rainer
407,122
Randy Ostrander
Lake and Lodge Realty LLC - Big Rapids, MI
Real Estate Broker, Serving Big Rapids and West Central MI

Ruins the credibility for all of us. Now we have to work harder to not be confused with that type of agent.

Apr 27, 2011 01:52 PM #1
Rainer
261,153
Marge Draper
Keller Williams Realty Palo Alto - Menlo Park, CA
REALTOR, Keller Williams Realty, Menlo Park CA

I heard at a class I took on Monday about protecting yourself in short sale and REO transactions that the FBI has about 400 agents looking at mortgage fraud.  They are prosecuting as well.

Apr 27, 2011 01:55 PM #2
Rainmaker
218,450
Sally Dunbar
Lyon Real Estate, Fair Oaks CA (Sacramento Area) - Fair Oaks, CA
Fair Oaks Realtor - Fair Oaks Homes for Sale

It all sounds so unbelievable that lenders or Realtors would ever jeopardize themselves like that, but it happens a lot.  I actually had an agent try to get me to allow money to go under the table on one of my escrows.  I told her NO, obviously, then told her should could lose her license and go to jail for it.  She told me to mind my own business... that she does it all the time, and it's fine.

Keep waiting to see her name on the jail check-in register.

Apr 27, 2011 02:07 PM #3
Rainer
111,614
John Saari
Worcester, MA
"The Mortgage Buddy"

It would have been nice if the feds were looking at mortgage fraud when there actually was mortgage fraud, and that was 5 years ago.

Apr 27, 2011 03:44 PM #4
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