4closurefraud.org Owner Carol Asbury Accused of Running A Straw Buyer Operation
Foreclosure defense and owner of 4closurefraud.org attorney Carol Asbury was indicted by the feds. They allege she was involved in a mortgage fraud scheme in the wealthy community of Wellington. Wellington is about 15 miles west of West Palm Beach.
Prosecutors allege Asbury was involved in a scheme that would use people from the low-income Miami suburb of Opa Locka as straw buyers to purchase homes in Versailles. Carl Alexander was in charge of recruiting the straw buyers who were paid between $700-$15,000 for purchasing the homes. Alexander was indicted along with Asbury.
Asbury also owned a law firm specializing in mortgage closings. This was aside from her foreclosure defense firm of Save My Home Law Group.
The indictment states the closing documents were prepared by real estate broker David Lam and Asbury. The documents concealed the fact that lenders were lending the straw buyers more money than the house was worth. Alexander, Asbury and Lam pocketing the difference. In four transactions alone the three pocketed an estimated $1.8 million.
Here is the DOJ Press Release:
NINE CHARGED IN THREE INDICTMENTS CONCERNING VERSAILLES MORTGAGE FRAUD SCHEMES
“Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Kimberly A. Lappin, Acting Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), Miami Field Office, Jeff Atwater, Chief Financial Officer, Department of Financial Services, Amos Rojas, Jr., Special Agent in Charge, Florida Department of Law Enforcement (FDLE), Michael K. Fithen, Special Agent in Charge, U.S. Secret Service, and the Palm Beach County Mortgage Fraud Task Force, announced the return of two indictments and one superseding indictment involving mortgage fraud schemes relating to properties in the Versailles development in Wellington, Florida. Charged in at least one of the indictments are defendant Carl Alexander, 45, of Parkland, Florida; Carol Asbury, 59, an attorney, of Lake Worth, Florida; Patrick Brinson, 34, of Miami, Florida; David Lam, 42, a real estate broker, of Parkland, Florida; David Miller, 43, Miramar, Florida; Godfrey Myles, 42, former professional football player, of Miami, Florida; Michael Samuda, 38, an attorney, of Weston, Florida; Thomas Thelusma, 40, a firefighter, of Miami, Florida; and Victoria Wilson, 30, a mortgage broker, of Hollywood, Florida.
As alleged in all three indictments, the defendants used “straw buyers” to submit false documentation substantially inflating the purchase price of the properties to various mortgage lenders. As part of the conspiracy, double HUD-1 Settlement Statements were prepared. One set with the real price was provided to the seller and another set with the inflated price was provided to the lender. The difference between the real price and the inflated price was either made to appear as if it were a debt owed to business entities controlled by the defendants and their co-conspirators, or was made to appear as profits to the seller. The fraudulent loan proceeds were instead laundered through multiple accounts to conceal the source and distribution of the money and were ultimately used for the benefit of the defendants and their co-conspirators.
More specifically, in one of the indictments (11-CR-80033-KAM), defendants Asbury, Brinson, Lam and Myles were involved in a mortgage fraud scheme that generated more than $2.55 million in mortgage loans and approximately $488,000 in fraudulent loan proceeds involving two properties in the Versailles development in Wellington: 10638 Versailles Boulevard and 10515 Vignon Court. Asbury and Lam are also charged with a mortgage fraud scheme which generated an additional $2 million in mortgage loans and $785,000 in fraudulent loan proceeds involving Versailles properties 10284 Medicis Place and 10420 St. Germain Court. Defendants Asbury and Lam are charged with two counts of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349, and defendants Brinson and Myles are charged with one count. Defendants Asbury, Brinson and Myles are each charged with two counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and defendant Lam is charged with four counts. Defendants Asbury and Lam are also each charged with one count of mail fraud, in violation of Title 18 United States Code, Section 1341. Defendants Asbury, Brinson, and Myles are each charged with one count of making false statements on loan applications, in violation of Title 18, United States Code, Section 1001, and defendant Lam is charged in two counts. Each of the defendants are also charged with one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h). Defendants Asbury and Lam are charged in three counts of money laundering, in violation of Title 18, United States Code, Section 1957, and defendants Brinson and Myles are charged in six counts.
In a second indictment (11-CR-80061-KAM), defendants Asbury, Alexander and Lam were charged for their involvement in a mortgage fraud scheme that generated more than $4.9 million in mortgage loans and approximately $1.8 million in fraudulent loan proceeds involving four Versailles properties: 10714 Versailles Boulevard, 3617 Royalle Terrace, 10293 Medicis Place, and 3554 Collonade Drive. Defendants Alexander, Asbury and Lam are charged with one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349; nine counts of wire fraud, in violation of Title 18, United States Code, Section 1343; four counts of mail fraud, in violation of Title 18 United States Code, Section 1341; four counts of making false statements on loan applications, in violation of Title 18, United States Code, Section 1001; and one count of conspiracy to commit money laundering, in violation of Title 18, United States Code, Section 1956(h). In addition, defendants Alexander and Asbury are charged in thirteen counts of money laundering, in violation of Title 18, United States Code, Section 1957, and defendant Lam is charged in six counts.
The third indictment (11-CR-80057-KAM) charges defendants Lam, Miller, Samuda, Thelusma, and Wilson in a mortgage fraud scheme that generated more than $3.79 million in mortgage loans and approximately $1 million in fraudulent loan proceeds involving three Versailles properties: 10475 Trianon Place, 10460 Trianon Place, and 3483 Collonade Drive. All of the defendants are charged with one count of conspiracy to commit mail and wire fraud, in violation of Title 18, United States Code, Section 1349; six counts of wire fraud, in violation of Title 18, United States Code, Section 1343; and one count of criminal forfeiture in violation of Title 18, United States Code, Section 981.
If convicted, the defendants face a maximum statutory sentence of 20 years in prison for the mail and wire fraud conspiracy, 20 years in prison for each of the mail and wire fraud counts, 20 years in prison for the money laundering conspiracies, 10 years in prison for each of the money laundering counts, and 5 years in prison for each of the false statement charges.
Mr. Ferrer commended the investigative efforts of the IRS Criminal Investigation Division, Department of Financial Services, FBI, FDLE, U.S. Secret Service, and the Palm Beach County Mortgage Fraud Task Force. The cases are being prosecuted by Assistant U.S. Attorneys Stephanie Evans, Ellen Cohen and Carolyn Bell.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty.”
“I’m Victim Of Government Persecution!”
Unfortunately, I can’t say I’m surprised by this. Asbury is claiming she’s a victim of government persecution because of 4closurefraud.org. However, that is simply not true. It has to more with they way but she conducts her business.
Asbury rose to prominence last May after she got upset that Palm Beach County Judge Meenu Sasse consistently ruling against her.
Asbury posted the contents of Judge Sasser’s mutual fund her site 4closurefraud.org. The fund contained stock holdings in several major banks.
She and her webmaster, Michael Redman tried to assert Judge Sasser unfairly ruled against foreclosure defense attorneys. They claim doing so would enhance the value of her mutual fund. Soon after posting this, they followed it up with another article claiming every judge in Palm Beach County is corrupt. Why? They claim the county’s pension fund has funds tied to the major banks.
Asbury’s Smoke And Mirrors
Contrary to popular belief, Carol Asbury doesn’t just sponsor 4closurefraud.org she owns it. She uses it as a marketing tool for her law firm. Redman claims Asbury is only a “sponsor.”
They make this claim because the site does not conform to Florida Bar rules. This is also the reason why soon after Redman’s involvement began, the ICANN registry was switched to “Domains By Proxy”.
The site was listed on Carol Asbury’s business cards prior to Michael Redman’s involvement. It was also listed as her website with the Florida Bar. Carol Asbury is a protégé of Neil Garfield.
She met unemployed car salesman Michael Redman at one of Garfield’s seminars. She then offered him a job as a researcher.
Asbury and Redman also ask for donations on site which is against Florida law.
This indictment isn’t the first time Asbury has been in trouble. In April of 2008, she was publicly reprimanded by the Florida Bar for misconduct.
Asbury’s History Of Abandoning Her Clients
Asbury also has a history of abandoning clients as she did with one of the clients I referred to her. I personally know of two others because I received calls from their new attorneys asking me questions about the reports I wrote that were in the file.
Michael Redman, manages 4closurefraud.org and defends his boss in the Palm Beach Post saying:
When I had the website MFI-Mod Squad and would expose shady loan modification companies. I would hear things very similar to this when I would expose fraudsters. Now, don’t get me wrong, I’m not saying Michael Redman was involved in Asbury’s straw buyer scheme. He’s just trying to save his both his job and his credibility.
Fake Experts Using Fear And Conspiracy Theories To Market Themselves
Redman’s response also doesn’t surprise me. He and the rest of the foreclosure activist crowd in Florida use fear and Glenn Beck-style government conspiracy theories to market their services.
The majority of activists think they are experts in lending because they went to a 5-hour Neil Garfield seminar.
These activists are nothing more than pissed off homeowners who are either unemployed or are retirees with nothing better to do with their time. They read the crazy stories about government conspiracy theories on the web then embellish them and then pass it along as fact.
4closurefraud.org got caught doing this several times. These activists will read a legal brief and then think they are a legal scholar. They have no background in the law, lending or finance. Yet, their power of their imagination coupled with watching too many empowerment movies on the Lifetime Channel makes them believe they’re a super hero.
Was Carol Asbury targeted by the feds because she going after the banks? I doubt it. My attorneys and I have a better success rate than Asbury and we have yet to have a problem.
As for the fate of Carol Asbury, we’ll have to wait and see what happens. But the last thing people need to do is speculate and spread rumors. A task that seems to be difficult for some people in Florida.
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