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Date: 07-08-2019
Case Style:
United States of America v. Phillip Yoder
Case Number: 3:17-cr-00030-JD-MGG
Judge: Jon E. DeGuilio
Court: United States District Court for the Northern District of Indiana (St. Joseph County)
Plaintiff's Attorney: John M. Maciejczyk
Defendant's Attorney: David A. Wemhoff
Description:
South Bend, IN - Ligonier, Indiana Man Sentenced To 87 Months In Prison
Phillip Yoder, age 41, of Ligonier, Indiana, was sentenced on his guilty pleas to wire fraud, bank fraud, mail fraud and bankruptcy fraud.
Yoder was sentenced to serve 87 months each on the mail fraud, bank fraud, and mail fraud counts, and 60 months on the bankruptcy fraud count, all to run concurrently. Yoder also was sentenced to two years of supervised release and ordered to pay a total of $581,386.04 in restitution.
According to his plea agreement, beginning in or about 2014 and continuing until in or about July 2015, Yoder and others, sometimes working through the entity, KOH Enterprises, LLC, defrauded persons via a “Foreclosure Rescue Scheme.” As part of the scheme to defraud, Yoder and others monitored foreclosure notices of properties, and would then approach distressed homeowners and convince them to transfer title of the property in exchange for false promises of being able to avoid further foreclosure obligations. They falsely represented to these homeowners that they would handle their mortgage arrearages and the foreclosure process. Because of these false representations, the homeowners vacated the property and transferred their interest in the property through a Quitclaim deed to business entities. Those entities then furthered the scheme by recording the Quitclaim at the local Recorder’s Office. However, the Quitclaim deed did not extinguish the homeowner’s outstanding mortgage debt. Yoder and others would use the mail to send a fraudulent document, entitled an “International Promissory Note”, purporting to satisfy the outstanding mortgage debt to the financial institution holding the mortgage. Simultaneously, Yoder and others would cause a fraudulent “Satisfaction of Mortgage” to be filed with the county recorder’s office in an attempt to discharge the mortgage. They would then convey another Quitclaim deed to an investor or purchaser of the properties, even though the property was still encumbered. The total loss to investors and insurers was $1,466,136.20.
With regard to the bankruptcy fraud, which resulted from a referral by the U.S. Trustee for Region 10, according to his plea agreement, on or about February 24, 2016, Yoder knowingly and fraudulently made a material false declaration, certificate and verification under the penalty of perjury in his bankruptcy proceeding. He claimed as an asset a “Billion dollar gold bond” when he knew that the purported bond was fraudulent and worthless. In his bankruptcy proceeding, Yoder claim $792,592.46 in debts.
“Creating a scheme that enriches the defendant while defrauding banks, insurers and average home owners, jeopardizes our financial system,” said U.S. Attorney Kirsch. “My Office in coordination with all our law enforcement partners will continue to aggressively prosecute these type of cases.”
“Everyone has the right to expect honest representation from those they do business with. Targeting homeowners with this type of fraudulent activity when they are already dealing with financial hardship is not only illegal but a violation of trust and won’t be tolerated by the FBI,” said Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. “The FBI and our law enforcement partners will continue to investigate and pursue those who try to line their pockets at the expense of others and hold them accountable.”
HUD Special Agent in Charge Geary stated, “At such a critical time for the Department of Housing and Urban Development, with programs that are vital to the well-being of so many in our communities, it is critical that those resources are completely dedicated to those in need. The HUD Office of Inspector General is committed to partnering with Federal prosecutors and fellow law enforcement to aggressively pursue those engaged in activities that harm HUD’s Single Family housing programs.”
“Today’s sentence sends a strong message to those who abuse the bankruptcy system,” stated Nancy J. Gargula, United States Trustee for Indiana and Southern and Central Illinois (Region 10). “Providing false documents such as fictitious “bonds” to the United States Bankruptcy Court undermines the integrity of the system and will not be tolerated. We appreciate the commitment of U.S. Attorney Kirsch and our law enforcement partners to holding those who abuse the bankruptcy system accountable. We welcome information that will help detect fraud and abuse in the bankruptcy system and we encourage citizens to report suspected bankruptcy fraud through our Internet hotline at USTP.Bankruptcy.Fraud@usdoj.gov.” The United States Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.
This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development’s Office of Inspector General in collaboration with the Northern Indiana Bankruptcy Fraud Working Group coordinated by the U.S. Trustee.
Outcome: 07/01/2019 148 ORDER as to Phillip Yoder (2). Court's written rulings during the Sentencing held on 7/1/2019. Signed by Judge Jon E DeGuilio on 7/1/2019. (saj) (Entered: 07/01/2019)
07/01/2019 149 SENTENCING held on 7/1/2019 for Phillip Yoder (2) before Judge Jon E DeGuilio. Govt appeared by atty Maciejczyk. Dft appeared by atty Wemhoff. Oviedo appeared on behalf of U S Probation/Pretrial Services. Dft sworn. Govt presents evidence. Court heard from counsel re: objections to PSR. Court to file a written order ruling on the objections. All objections to the PSR overruled. Court subtracts the 1 history point in paragraph 62 of the PSR. Court accepts paragraphs 1-120, except 46, 47, 51, 62, 64, 66, and 114 as modified. Court heard from counsel & Dft. Counts 1s, 6s and 9s: 87 months imprisonment on each of Counts 1s, 6s and 9s in 317cr030(2) and 60 months on Count 1 in 318cr087 (all to run concurrently) for a total term of 87 months; 2 years supervised release on each of Counts 1s, 6s and 9s in 317cr030(2) and Count 1 in 318cr087 (all to run concurrently) for a total term of 2 years; Total restitution of $581,386.04 (joint and several); Total of $400 special assessment fee. Court adopts paragraphs 121-136 of the PSR, paragraph 136 as modified. Dft waives reading of conditions. Court leaves it to the BOP to calculate any credit for time served. Remaining counts dismissed. Dft REMANDED to custody of US Marshal. 1:34-2:48 (Court Reporter Hoffman) (saj) (Entered: 07/02/2019)
07/01/2019 150 ORDER DISMISSING COUNTS for Phillip Yoder (2). The 137 MOTION to Dismiss Superseding Indictment Counts 2-5 and 7-8 at Sentencing filed by United States of America. Signed by Judge Jon E DeGuilio on 7/1/2019. (saj) (Entered: 07/02/2019)
07/01/2019 151 JUDGMENT as to Phillip Yoder (2). Signed by Judge Jon E DeGuilio on 7/1/2019. (saj) (Entered: 07/02/2019)
07/01/2019 152 COURT'S EXHIBIT LIST from the 7/1/2019 Sentencing as to Phillip Yoder (saj) (Entered: 07/02/2019)
18:1343 FRAUD BY WIRE AND AIDING AND ABETTING
(1s) 87 months imprisonment on each of Counts 1s, 6s and 9s in 317cr030(2) and 60 months on Count 1 in 318cr087 (all to run concurrently) for a total term of 87 months; 2 years supervised release on each of Counts 1s, 6s and 9s in 317cr030(2) and Count 1 in 318cr087 (all to run concurrently) for a total term of 2 years; Total restitution of $581,386.04; Total of $400 special assessment fee
18:1341 MAIL FRAUD AND AIDING AND ABETTING
(6s) 87 months imprisonment on each of Counts 1s, 6s and 9s in 317cr030(2) and 60 months on Count 1 in 318cr087 (all to run concurrently) for a total term of 87 months; 2 years supervised release on each of Counts 1s, 6s and 9s in 317cr030(2) and Count 1 in 318cr087 (all to run concurrently) for a total term of 2 years; Total restitution of $581,386.04; Total of $400 special assessment fee
18:1344 BANK FRAUD AND AIDING AND ABETTING
(9s) 87 months imprisonment on each of Counts 1s, 6s and 9s in 317cr030(2) and 60 months on Count 1 in 318cr087 (all to run concurrently) for a total term of 87 months; 2 years supervised release on each of Counts 1s, 6s and 9s in 317cr030(2) and Count 1 in 318cr087 (all to run concurrently) for a total term of 2 years; Total restitution of $581,386.04; Total of $400 special assessment fee
Plaintiff's Experts:
Defendant's Experts:
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