The problem with City of Miami Assistant Fire Chief Veldora Arthur's mortgage fraud defense.

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We discussed City of Miami Assistant Fire Chief Veldora Arthur's eleven million dollar mortgage fraud indictment in detail last week and also got to hear one of her attorneys defend her in the media...

Bieber called his client “a victim” who “unfortunately associated herself with people who were committing fraud.”

Bieber said that even though Arthur was able to purchase the properties with no money down — a move he said was fairly common during the boom years of the real estate market — she received a payment after the properties closed.

“She believed this was an honest investment during the real estate boom,” said Bieber. 

That last quote is the best, "...an honest investment during the real estate boom," let's indulge the attorney for a moment and accept his explanation for his clients involvement in this massive scheme to defraud, just how far does this believing it was an honest investment thing get his client?  Let's assume that...

• She had no idea there was anything criminal going on.
• She had no part in creating false loan applications
• She had no part in falsifying her income in order to gain nearly $5,000,000 in mortgages.
• She had no part in conjuring up the down payments for these mortgages which her attorney claims she purchased with no money out of pocket.
• She had no part in the proceeds of these purchases that she made being disbursed to third parties with bogus loans on the HUD statements.

So let's assume all of the above are true and for the time being give Veldora the benefit of the doubt.  Now, let's go back and take a look at the mortgages for the properties mentioned in the indictment...


First the mortgage for unit 3711 which closed on February 7, 2006...

veldora arthur first mortgage for 3370 NE 190th street unit 3711 aventura flo 33180

And now the mortgage for unit 3111 which closed on March 6, 2006...

veldora arthur first mortgage for 3370 NE 190th street unit 3111 aventura flo 33180

Anyone see the problem here on these two homes that closed within a month of each other?  Keep in mind that Ms. Arthur lived and still lives in Weston Florida which is located in Broward county and both these mortgages were for homes located in Dade county.  That brings up this detail from the mortgages, as always, click on the image to enlarge...

WHOOPS!  Through her loan applications and by executing these mortgages, Ms. Arthur has represented to the banks that lent her the money for these homes that they are both her primary residences.  Does this scenario ring any bells for our readers?  Our colleagues over at Investigation Miami busted City of Miami Commissioner Marc David Sarnoff for doing the exact same thing, lying about home being a primary residence in order to get a lower interest rate!  Remember mortgage fraud is defined as...

"submitting and causing to be submitted materially false and fraudulent mortgage applications and settlement statements"

There you have it.  Unless Ms. Arthur is going to turn around and say that she didn't execute the mortgages for the homes involved in the $11,000,000 fraud indictment, she's got a long and arduous uphill battle ahead of her in defending herself, that is unless she chooses to use Commissioner Sarnoff's defense for mortgage fraud...

"I don't know anyone who's ever read their mortgage!"