Former SMU Football Player Indited in Mortgage Fraud Scheme

[Mustangunner]

http://www.justice.gov/usao/txn/PressRel11/baker_etal_mortgage_indict_pr.html


FEDERAL GRAND JURY INDICTS FIVE DEFENDANTS
IN MORTGAGE FRAUD SCHEME

Defendants Allegedly Fraudulently Obtained Nearly $22 Million in Loan Proceeds

DALLAS — A 29-count indictment, returned last week by a federal grand jury in Dallas and unsealed this week, charges five individuals with various felony offenses related to a mortgage fraud scheme they ran for nearly three years in the Dallas-Fort Worth area, announced U.S. Attorney James T. Jacks of the Northern District of Texas (NDTX).

The indictment charges Michael Anthony Baker, 31, presently of Houston, Texas; Monique Untae Stallworth, 37, of Garland, Texas; Sterling Wesley Harris, 29, of Dallas; Koreem Dujuan Baker, 34, of Dallas; and Folami Dayo Baker, 36, of Desoto, Texas; each with one count of conspiracy to commit wire fraud. Michael Baker was a Dallas resident at the time of the alleged fraud. Michael and Koreem Bakers are brothers.

Harris appeared earlier this week before U.S. Magistrate Judge Irma C. Ramirez for his initial appearance and was released on personal recognizance bond. Michael Baker, Stallworth and Folami Baker are expected to surrender within a few days. Koreem Baker is currently in state custody and is expected to be transported to the NDTX within the next few weeks.

The indictment alleges that the defendants operated a mortgage fraud conspiracy from December 2004 until at least October 2007 to defraud and obtain money from lending institutions by, among other things, using straw buyers to purchase homes by submitting false and fraudulent documents and statements to lenders. In total, the indictment alleges that the defendants obtained nearly $22 million in fraudulently obtained loan proceeds.

In addition, all of the defendants are charged with multiple substantive counts of wire fraud. Michael Baker is charged with one count of money laundering, and Koreem Baker is charged with 16 counts of engaging in a monetary transaction with criminally derived property.

1 The indictment alleges that the defendants profited from loans to purchase residences in the Dallas area; fraudulently obtained mortgages in others’ names; fraudulently obtained mortgages for more than the sales price; fraudulently found individuals with sufficient credit to qualify for the loans; fraudulently made each borrower appear to be a qualified, bona fide purchaser who intended to reside in the property, when the borrower had no intention of doing so; fraudulently created surplus loan proceeds by creating bogus invoices for repairs/upgrades which were never done; fraudulently allowed the residences to go into foreclosure after no, or just a few, payments were made on the loan; and fraudulently shared in the surplus loan proceeds.

This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force visit: http://www.stopfraud.gov

An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy to commit wire fraud count and each of the substantive wire fraud counts carries a maximum statutory sentence of 20 years in prison and a $250,000 fine. The money laundering count carries a maximum statutory sentence of 20 years in prison and a $500,000 fine, upon conviction. Each of the counts charging engaging in a monetary transaction with criminally derived property carries a maximum statutory sentence of 10 years in prison and a $250,000 fine, upon conviction. The indictment also includes a forfeiture allegation which would require any convicted defendant to forfeit to the U.S. proceeds or property traceable to their offenses.

The case is being investigated by the Internal Revenue Service - Criminal Investigation and the FBI. Assistant U.S. Attorney J. Nicholas Bunch is in charge of the prosecution.

[GoRedGoBlue]

Didn't pb say he'd be in the NFL? ...we stole him from ND

[PonyPlayer4]

He was in camp with the Browns. Don't believe he ever made a roster though.

[mrydel]

Sounds like they read Danny Faulkner's book.

[White Helmet]

Didn't pb say he'd be in the NFL? ...we stole him from ND

Wasnt he a Cavan recruit?

[EastStang]

So many folks just signed a bunch of mortgage applications not reading them (or not understanding them) and now they're all getting indicted, investigated and arrested. Some even deported. All trying to beat cash in on the real estate boom.

[ponyboy]

Didn't pb say he'd be in the NFL? ...we stole him from ND

Wasnt he a Cavan recruit?

Yes. 1998 I believe.

[Peruna 2K5]

He was in one of my English classes at SMU. Thought he was a good guy...shocked to see this happen.

[03Mustang]

Ironically enough, he was in a business strategy class with me my senior year. I don't seem to remember this business plan being pitched in that class.

Tough deal, but guys that gamed the system like this made it infinitely harder for the rest of us to stay employed over the last couple of years. Hopefully he's proven to not be a part of the problem, but I doubt the government indicts people without a pretty strong case.

[Corso]

Hope there's more smoke than fire here. I only met Sterling once or twice, but he was a very nice kid. Hoping for the best for him here.

[mustangxc]

I'm pretty sure he was a freshman in the Fall of 1999. I know he was in a couple of my business classes. I am really shocked!!! He did come across as though he'd be a great salesman so I would have expected him to be very successful in a legitimate business. I hope he is not guilty and if so that he is exonerated. I want to see my fellow alums on CNBC daytime programming for interviews with the "Money Honey" Maria Bartiromo, not on the show American Greed!!!!

[reddevil]

Didn't pb say he'd be in the NFL? ...we stole him from ND

Wasnt he a Cavan recruit?

Yes. 1998 I believe.

Are you sure that it wasn't 1999.

[friarwolf]

Feds don't move until they are 99% sure they have you.......Even if he is not guilty, the Feds will destroy him financially.................

[ponyboy]

Are you sure that it wasn't 1999?

Yes, it must've been 1999. Here's an article from his senior year. BTW, his brother Devonric also played here. He's a model now, I believe.

http://xlztst1.com/Assets/PDFs/Terrell_ ... 9_1998.pdf

[Alaric]

Tough deal, but guys that gamed the system like this made it infinitely harder for the rest of us to stay employed over the last couple of years.

the implosion of a 60 year long credit bubble, created largely by public policy, was and STILL IS the problem. small time mortgage fraudsters barely moved the needle