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Lending Executive Sentenced for Mortgage Fraud

mortgagedaily.com | August 18, 2013

By Peter Hall

The former manager of an Allentown, Pa., mortgage company was sentenced Wednesday to four years in prison for his role in a long-running mortgage fraud scheme.

U.S. District Judge Harvey R. Bartle also ordered Joel Tillett, 36, of Whitehall Township, to pay nearly $980,000 in restitution after he pleaded guilty in May to conspiracy and forgery to obtain a government insured loan.

According to court documents, Tillett and other employees of Madison Funding, which had offices on Hamilton Street, falsified information about their clients' income and employment.

In many cases, the borrowers could not keep up with payments and defaulted, leaving taxpayers on the hook for hundreds of thousands in federally insured loans, according to court documents.

Tillett was personally responsible for 10 fraudulent loans totaling more than $1.5 million between 2006 and 2008. Seven of those loans have defaulted, leaving the lenders and the Federal Housing Administration with a loss of more than $874,000, court documents said.

As the originator, Madison Funding earned thousands of dollars in commissions on each of the allegedly fraudulent mortgages, prosecutors said.

Tillett faced a maximum possible sentence of seven years in prison. In addition to prison, Bartle ordered Tillett to submit to three years of supervision upon his release.

His attorney, Joshua Karoly, said in May his client accepted responsibility for the crimes quickly in a hope that he would receive a lighter sentence. Karoly said his client was young, unfamiliar with the mortgage business and did not realize the gravity of his actions.

Tillett was one of several Madison Funding employees charged in the scheme.

Also charged are: branch manager Jason Boggs, loan officer Claribel Gonzalez, and loan processors Florentina Peralta, Ghovanna Gonzalez and Angela Diaz. A seventh employee, Denise Peralta, was charged separately.

According to court documents, prosecutors were prepared to show at trial that Tillett and the others conspired to mislead lenders, including Countrywide, Washington Mutual, Mortgage IT, Mortgage International and Security Atlantic Mortgage Co.

The case was investigated by the U.S. Department of Housing and Urban Development, the Federal Deposit Insurance Corp. and the Federal Housing Finance Agency.


Back to August 2013 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

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