Pete Nemeth

June 24th, 2008

FBI
935 Pennsylvania Avenue, NW
Washington, DC 20535
Attn: Robert S Mueller, Director

via snail mail
cc: distribution list /with attachments

Dear Bob Mueller

I read the FBI press release dated 6/19/08 about operation malicious mortgage. Since March 1st - 144 cases with 406 defendants charged. According to the local news media - none of these cases are located in Colorado.

Please treat this as an official complaint against Peter P. Nemeth and the mortgage broker (presumably Rob Gremminger) and the appraiser(s) (identity unknown) and James M. Wells, III, and SunTrust for mortgage fraud associated with the $999,000 mortgage loan dated (on or about) 10/25/06 for the property at 16866 E Lake Ave, Aurora (and/or Centennial), CO 80016. In addition, this is a complaint against Pete Capra and Golden Design Group and Distinctive Mortgages for mortgage fraud on approximately 300 transactions in Piney Creek Village, Colorado with an estimated mortgage fraud of $50,000 to $250,000 for each transaction.

By copy of this letter, I am filing a complaint against all of the above named persons and entities with the Arapahoe County District Attorney, Colorado Attorney General, Colorado Bureau of Investigation (CBI), the SEC, HUD, VA, FDIC, Office of Thrift Supervision, OFHEO, Fannie Mae, Freddie Mac, and David E. Nahmias.

By copy of this letter - I am filing a complaint against the real estate license of Peter Paul Nemeth (License number II40039284) and the mortgage broker license of Rob Gremminger (Licence number LMB100011393).

Update 10/05/09: Peter Vincent Capra permnaently surrendered his Colorado mortgage broker license. See pg 13 of the DORA newsletter dated Fall 2009, and the final agency order dated May 2009]. A license check on Pete Nemeth on 10/05/2009 shows no indication of disciplinary action - i.e. a clean license.

Young Kim

I begin with a brief summary/update of Young Kim.

A Google search on "young kim" and "mortgage fraud" suggests that Young Kim is a common name. GREFPAC has a story about a Georgia Young Kim mortgage fraud, and there is also a New York City Young Kim fraud.

I wrote about the Colorado Young Kim in August of 2006. She went on a shopping spree and bought 10 houses during a 7 month period in 2006. It's clear that each of the properties was purchased for the sole purpose of "cash back at closing" from the excess mortgage funds - i.e., mortgage fraud. My best estimate is that Young Kim (or someone) pocketed $500,000 "cash back at closing" from these 10 transactions.

Young Kim's first house was bought with a Lehman Bros loan, and number 10 on the list was a (darn near) million dollar house in Piney Creek Village. She bought 6062 S Kalispell brand spanking new from Pete Capra a/k/a Golden Design Group for $986,000.

Barely Lived In

We now know that all 10 of the Young Kim properties went into foreclosure. 6062 Kalispell recently (6/6/08) sold for $615,000 - that's $371,000 less than the mortgage loan. The listing agent for the REO sale (Debra Gleason) said the house was "barely live in". Indeed.

It seems odd to me that Debra has not (yet?) reported the sale in MLS - perhaps she knows something I don't.

With that background, let's have a look at a few other houses from the same neighborhood.

In the Hood

There are 21 houses on the 16700 block of Lake Ave in Piney Creek Village. All built in (approximately) 2002. 9 of the 21 houses are listed on the Arapahoe County foreclosure Website (16795 went twice).

16711 E Lake Ave - Lorenzo D Phillips

16713 E Lake Ave - Nicholas J Beal

16731 E Lake Ave - Michael R McCormick and Demetrius G Gianopoulos

16733 E Lake Dr - Derek David Malig

16751 E Lake Ln - Sterling E Foster, Ligaya B Foster, DSL Investments, LLC

16754 E Lake Dr - Robert Zwinck

16773 E Lake Dr - Richard L Hanna

16793 E Lake Dr - Dwayne Alton Norman, Sr

16795 E Lake Dr - Eric Singer

16795 E Lake Dr - (again) Marjorie Patterson

Many of these houses are "barely lived in". Q - How many of these properties were involved in blatant mortgage fraud? A - All of them.

16795 E Lake Dr "sold" (I use the term loosely) on October 27th, 2006. The sale was not reported on MLS. The Bozos at SCME Mortgage Bankers made a $930,000 loan. This was a ridiculous loan because this property was never worth $930,000. A year later SCME was kaput. 16795 E Lake Dr is currently listed for sale on MLS asking $512,950. That's $417,000 less than the mortgage loan - in less than 2 years time. Somebody got screwed on this one.

Pete Nemeth

In January of 2004 Pete Nemeth owned (at least) 2 houses. 91 Blue Heron Dr in Greenwood Village and 15638 E Powers Dr in Centennial.

Approximately January 23rd, 2004 Pete Nemeth bought a 3rd house. He bought 16866 E Lake Ave - located in Piney Creek Village - the same neighborhood as Demetrius G Gianopoulos and Young Kim.

The purchase price is recorded as $780,000. I have formed an opinion that Pete Nemeth bought this property from Golden Design Group (the builder), for similar reasons and with similar terms to the Young Kim sale.

Six weeks later, Pete put the property back on the market with an asking price of $814,900 - an increase of $35,000 over what he paid. About a year later, in April of 2005 the price was $795,000 and still no takers. Dang.

Pete then raised the price to $860,000. A month later - still no sale. Pete then raised the price to $970,000. Five months later on October 6th, 2006 the listing expired with a final asking price of $950,000.

If you were thinking the problem was the price was too high - you would be wrong.

About a week after the MLS listing expired, approximately 10/25/06 Pete Nemeth sold 16866 E Lake Ave to Alva Tolliver for $999,000. The sale was not reported in MLS.

You might be thinking Pete Nemeth was lucky to sell for $219,000 more than he paid and a smooth $49,000 more than the MLS asking price. I have formed an opinion that "luck" had nothing to do with it. Alva Tolliver obtained a $999,000 mortgage loan from the good people at SunTrust Mortgage. The property promptly went into foreclosure. This property was "barely lived in".

The house at 16866 E Lake Ave in Aurora, CO is now listed on MLS with an asking price of $629,900. That's $369,000 less than the mortgage loan - in about 18 months. That works out to $20,000 per month. And that's before expenses. Somebody is getting screwed on this one.

Atlanta Fraud Ring Convicted

This article in the Atlanta Business Chronicle gives details about a situation at SunTrust. The headline is: Metro Atlanta Fraud Ring Convicted. I see some striking similarities between the Atlanta Fraud Ring and Pete Nemeth.

The article says in the summer of 2006 a SunTrust employee named Latesha Garner and her father somehow duped the management at SunTrust into making bad loans. The article would have us believe SunTrust is/was the victim. I wonder if Latesha had anything to do with the loan at 16866 E Lake Ave. My best guess is that she did not.

I wonder if Jim Wells had anything to do with the $999,000 mortgage loan at 16866 E Lake Ave. My best guess is that he did.

It Ain't Over

Can we agree there is a problem? How many think of the problem in the past tense? How many think this won't happen again?

How To

For those who would like to design the lifestyle you deserve - I recommend you sign up for this local seminar. It was presented on May 28th, 2008. I'm not sure when the next one is scheduled - but I think if enough people express interest, it won't take long.

Seminar presenters include Pete Nemeth, Associate Real Estate Broker with Keller Williams Executives in Highlands Ranch; Michael McNamara of Brentwood Equity Advisors, Inc., founder of the “Wealth Without Wall Street” e-book and seminar/webinar series; and Rob Gremminger, Austin Financial Consulting LLC, a CPA and licensed mortgage broker.

Peter Nemeth is the "lucky" seller at 16866 E Lake Ave.

Pete Nemeth is also a licensed real estate agent. Colorado license number FA40039284. Employing broker is Grant Dolby at Keller Williams.

Rob Gremminger, Austin Financial Consulting LLC, a CPA and licensed mortgage broker. Colorado license number LMB100011393.

Conclusion

SunTrust is making mortgage loans in Aurora, CO at the rate of 30 per month. My best guess is that nearly all (90%?) of these loans involve the same hocus pocus as 16866 E Lake Ave. The only difference is the dollar amounts are smaller.

For example - 1190 Fulton Street sold 3/17/08. Asking price in MLS was $84,900. After 94 days on market, the property sold for $90,000 with an FHA loan provided by James M Wells, III and the good people at SunTrust.

Hey Jim Wells - clean up your act.

Pete Nemeth, James M Wells, III, Young Kim, Dick Fuld, Angelo Mozilo, Richard Berst, Justin M Juarez (remember him?) and the executives at SCME, et. al., all get paid on commission. If they get to keep the money, it's just a matter of time before somebody else comes along to do it again. And again.

Sincerely,

Philip G Rice
11268 E Linvale Dr
Aurora, CO 80014
720-282-3376
phil.rice@mkgappraisal.com

ps - To all who have read this far, please take a minute and think creatively about something you can do. Make a positive difference. If you need help, call me at 720-282-3376 or send an email.

-- End of Letter --

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