California Real Estate Fraud Report

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20
Dec

Ocwen Employee and Contractor Get Prison for Bribery for REO Contracts

Publisher’s Note: This crime is very common, but rarely addressed by either the banks or law enforcement. In this case, though, the bad guys actually were caught and prosecuted.

Ronald Hurst, a former contractors, must serve two years in prison for conspiring to commit bribery and wire fraud from January 2006 until September 2007, according to the Department of Justice. His co-defendant, Bryant Carbonell, received six months of home confinement for his participation.

Both men were sentenced by Judge Philip Reinhard of the U.S. District Court for the Northern District of Illinois, where the indictments were originally filed.

Hurst and Carbonell had sub-contracts with West Palm Beach, Fla.-based Ocwen Loan Servicing, which managed foreclosed homes under its own contract with the Veterans Administration.

Court documents showed that they paid kickbacks to Ryan Piana, a former residential sales manager at Ocwen, to direct housing maintenance work to companies with which they had relationships. Piana additionally paid other Ocwen employees to participate, again, according to court documents. All are forms of REO fraud.

Ryan Piana was also indicted, ultimately pleaded guilty and was sentenced to 24 months in prison, according to a US DOJ press release.  Judge Reinhard also ordered Piana to re-pay $147,825 to the Veteran’s Administration and the Veterans Affairs Mortgage Guarantee Program, which were the victims of their crimes.

This case is the third prosecution involving Ocwen-managed properties.

No prosecutions for REO fraud in California – ever – to my knowledge.

 

© Copyright 2007-2017 Monique Bryher

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The information and notices contained on The California Real Estate Fraud Report are intended to summarize recent developments in real estate fraud, mortgage fraud, short sale fraud, REO fraud, appraisal fraud, loan modification scams, loan modification fraud and other real estate related crimes occurring in Los Angeles and California. The posts on this site are presented as general research and information and are expressly not intended, and should not be regarded, as legal advice. Much of the information on this site concerns allegations made in civil lawsuits and in criminal indictments. All persons are presumed innocent until convicted of a crime. Readers who have particular questions about real estate fraud, mortgage fraud and appraisal fraud matters or who believe they require legal counsel should seek the advice of an attorney.

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