The Foreclosure Scam Squad of Brewer, Forsythe, Vilt, DeLaRue, LeBoeuf and Southern District Fed. Court

Alrighty, LIT lovers and rogues (yeah, we know you’re readin’), we’ve got a cracker for y’all today, before the 4th of July fireworks.

So hang onto your britches, while we give y’all a quick synopsis.

This case involves the usual suspects we’ve recently written about.

We’ll name and shame ’em again here.

Brian Brewer [“Trustee” and Owner of Momentum Title],

Sandy Forsythe [Thievin’ Homesteads for No Money Down, New Millenia Properties],

Clay Vilt [Rogue Foreclosure Defense Lawyer, Conflicts of Interest – Everywhere],

Erick DeLaRue [Rogue Foreclosure Defense Lawyer, Conflicts of Interest – Everywhere],

Jason LeBoeuf [Rogue Foreclosure Defense Lawyer, former BDF Hopkins lawyer (turncoat), Conflicts of Interest – Everywhere],

and

Chief Judge Lee Rosenthal, [SDTX, Houston],

Retired District Judge Vanessa Gilmore [SDTX, Houston].

The Homeowners

The distressed homeowners are Nesly Victor and Marie Victor purchased their new build home and closed in December 2013, with a $277k mortgage.

Only a year later, they were missing payments and over the next 2 years they were trying to fix their financial issues with the servicer, including loan modification(s) but on 21st December 2016, 3 years after moving into their homestead, the servicer accelerated the note.

The Foreclosure Squad Scam

After the home was placed into foreclosure and a sale arranged, the Victors would at some point meet the foreclosure scam squad (no doubt, through incessant mailings and/or cold calling) and they would be sold on the scheme to transfer their title via a special warranty deed to Sandy Forsythe of New Millenia Properties, with Brian Brewer as, we understand, acting as Title Company and “Trustee”.

As LIT has uncovered in related cases by Forsthye, she pays $10 ‘consideration’ for this transfer.

That’s otherwise known as a FRAUDULENT TRANSFER.

In effect, Forsythe is obtaining the deed to a home without any monetary consideration and then rents the home back to the Victors’, all whilst not paying the mortgage payments to the lender with those funds, but rather funneling some of that cash to the rogues lawyers at Vilt and Associates to delay the foreclosure.

In the interim, the Victors’ credit rating is taking a beating, and they are unaware of much of the criminal gamesmanship being played by the foreclosure scam squad.

LIT avers this is no different from a ‘straw buyer’ scheme:-

When a person buys real estate on behalf of someone else, the law may consider them a “straw buyer” if they have no intention of using the property themselves. For example, an individual with good credit may secure a mortgage and purchase a piece of real estate for another person who may have poor credit or multiple existing loans.

If the actual buyer does not intend to make payments on the loan and the owner could not have made the purchase legally, this type of real estate scheme may be a criminal offense, see;

U.S. v. Curtis, 635 F.3d 704, 720 (5th Cir. 2011) (“The defendant need not have supervised each and every coconspirator: “Proof that the defendant supervised only one other culpable participant is sufficient to make the defendant eligible for the enhancement.” In the context of a criminal mortgage-fraud conspiracy, we held in United States v. Cooks that application of the organizer/leader enhancement is appropriate where the defendant located the properties that were the subject of the conspiracy, recruited other participants, oversaw the production of forged documents, and received the bulk of the profits.”).

The First Foreclosure Defense Lawsuit by [Nesly] Victor” and “Trustee” Brian Brewer

This was filed in Harris County District Court on Jun 5, 2017, 4 days after the special warranty deed, dated Jun 1, 2017, was recorded per HCAD.

Vilt and Associates [“Vilt”] represented both Nesly Victor and Brian Brewer, a conflict of interest.

This would be removed to federal court on July 17 and disposed of by Chief Judge Lee Rosenthal on Dec 12, 2017, with prejudice.

The strong wording of her dismissal (as shown herein) is of particular note.

The Second Foreclosure Defense Lawsuit by [Marie] Victor” and “Trustee” Brian Brewer

Undeterred by the ‘with prejudice’ dismissal in federal court, a second lawsuit was frivolously filed to delay foreclosure by the lender.

This was filed in Harris County District Court on March 26, 2018.

Once more, Vilt represented both Marie Victor and Brian Brewer, a conflict of interest. Jason LeBoeuf would replace outgoing Erick DeLaRue as joint-counsel for Victor and Brewer, along with Robert Clay Vilt.

This would be removed to federal court on April 19, 2018 and disposed of by now retired Judge Vanessa Gilmore on April 17, 2019.

What is extremely disconcerting to LIT, is what was blanked in Judge Gilmore’s wordsmithed opinion.

There was absolutely no mention of the prior case(s) by Nesly Victor [Victor i] in her order, which did not specify dismissal with or without prejudice.

There was no questioning from her, about the “Trustee” Brian Brewer, standing, and the fact Judge Gilmore stated in her summary the homeowners signed a special warranty deed and were renting the home back [from Brewer, but it’s actually Forsythe, per our research].

Judge Gilmore was a long-serving Federal Judge.

She knew there was blatant fraudulence in this case, but decided to blank out key information and prior judgments.

Judge Gilmore also refused to address the obvious criminality that was oozing from the docket filings, past and present.

HCAD Ownership History is Short

There’s only two recordings, the first it the Victors and the second is New Millenia’s signature registration, using the Street name for the residence and tagging “Trust” onto the end, e.g. Camero Rose Trust.  Trust, that’s a contradiction, ain’t it?

Summary

LIT has highlighted the major issues with the State of Texas covering up the criminality and sins of lawyers via bent Judges.

Indeed, we’ve highlighted Clay Vilt’s federal lawsuits and how he stopped filing for a few weeks and after clearly holding ex-parte conversations with the judiciary, Vilt was green-lighted to start refiling.

But dumb dumb filed all his paperwork for the 5 active foreclosure cases in federal court on the same day, June 22nd, and didn’t think we’d notice.

Wrong.

We watched Robert Clay Vilt dismiss one case and we tweeted out to the Courts that there’s 4 cases left to go.

Now the judiciary are at odds and ends what to do next.

Recently, we’ve proven that nearly all lawyers in Texas who are collecting debts are not licensed and bonded with the State of Texas and that on the opposite side of the table, lawyers are not registered as Debt Management and Settlement companies, both in violation of Texas Law.

One thing is for sure, LIT has an incredible Criminal Dossier, and it’s about ready to become a very severe migraine for the State of Texas, which is in a right state, if you’re in the legal profession.

The question is, will the federal enforcement agencies act?

We’re about to find out.

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Happy Independence Day.

#WeThePeople

First Guaranty Mortgage originated $10.6 bln in mortgage loans in 2021

Laid off 80% of its workforce

The company blamed a collapse in the secondary market for mortgage refinancing and collateralization

(Reuters) – Mortgage lender First Guaranty Mortgage Corp filed for bankruptcy in Delaware on Thursday, saying it had laid off 80% of its employees and stopped making new loans.

The company, based in Plano, Texas, originated $10.6 billion in mortgage loans in 2021, according to a court filing in its bankruptcy case.

It entered Chapter 11 with more than $473 million in debt, largely owed to banks that provided funding for the company’s residential mortgages.

First Guaranty Mortgage said it incurred significant operating losses and cash flow challenges due to worsening conditions in the mortgage market, including “a dramatic collapse of the mortgage refinance market and the weakening mortgage purchase market,” factors exacerbated by a lack of housing inventory and increasing affordability issues in the U.S.

Rates on home loans surged earlier this month after the Federal Reserve hiked interest rates by three-quarters of a percentage point, the largest increase since 1994.

First Guaranty Mortgage said it was originating far fewer mortgages and had been on pace to originate between $5-$6 billion in new loans this year compared to the nearly $11 billion originated in 2021.

And, it is seeing lower profits on the re-sale of loans causing the company to suffer a $23.3 million after-tax net loss in the first four months of 2022.

First Guaranty Mortgage said its existing mortgages are serviced by third parties and will not be impacted by the bankruptcy filing, the company said in a press release.

The company has lined up financing for its bankruptcy case and is exploring all available restructuring options, chief executive Aaron Samples said.

The bankruptcy loan the company is finalizing will allow it to continue operations and honor commitments to fund already-approved residential mortgages, and it has engaged potential partners to support its pipeline of in-process loans, according to its statement.

Shortly before its Chapter 11 filing, the company laid off 471 of its 600 employees, according to court documents.

Rising mortgage rates and the drop in home-buying demand have contributed to layoffs in the mortgage department of JPMorgan Chase and staff reductions at real estate brokers Compass Inc and Redfin Corp.

First Guaranty Mortgage is scheduled to appear for an initial hearing in Wilmington, Delaware, bankruptcy court on Friday.

The case is In re First Guaranty Mortgage Corp, U.S. Bankruptcy Court for the District of Delaware, No. 22-10584.

For First Guaranty: Mary Caloway and Laura Davis Jones of Pachulski Stang Ziehl & Jones

The DOJ are advertising for an Unsecured Creditors Committee