Source: https://www.scam.com/showthread.php?10092-4-new-defendents-in-Dorean-Group-case&s=582696cd8b89c05052caca4e50d383d0
Timestamp: 2019-04-22 18:18:37+00:00

Document:
Charles Dewey Tobias, 58, of Longwood, Florida.
These charges are the result of an investigation by the FBI.
The principals of the Dorean Group are Dale Scott Heineman of Union City, California, and Kurt F. Johnson, of Sunnyvale, California. They, along with the Dorean Group and four of its brokers, are charged with operating a debt elimination scheme whereby fraudulent documents are recorded as part of their clients’ titles to allegedly transfer lenders’ secured interests in the properties when the corresponding mortgage and home equity loans had not been paid. With this fraudulently-generated free and clear title, some clients, at the direction of the Dorean Group, obtained hundreds of thousands of dollars in home equity loans from independent lenders.
550 properties throughout 35 states with a potential value of greater than $88 million in loans that may have been affected by this alleged scheme. The FBI is also investigating properties in 19 California counties affected by this alleged scheme.
U.S. Attorney Kevin V. Ryan stated, "Homeowners should be cautious of offers that sound too good to be true. This alleged scheme violates mortgage agreements between the lender and borrower and taints property titles by recording false documents on the title of a home. Manipulating property titles and interfering with mortgage loans with the intent to defraud is illegal and will result in prosecution."
Joseph Ford, Special Agent in Charge of the FBI in San Francisco, stated, "Mr. Heineman and Mr. Johnson are accused of being con artists in a sophisticated telemarketing scheme. They are alleged to have incorporated the internet to further their criminal enterprise, which is nationwide in scope and has significant impact on the housing market in the U.S. Because cyberspace has no borders, the FBI is working with its law enforcement partners from around the world to address these growing crimes."
According to the indictment, the Dorean Group is an unlicensed and unincorporated entity that has been operating a purported debt elimination program since at least January 2004. The Dorean Group uses brokers to promote its program. On various websites, the Dorean Group and its brokers publically advertise that they have a "PROVEN, legal and moral way of eliminating your mortgage while adding $32K to your pocket (*based on a $200,000 mortgage)."
(1) Fee: The client pays an up-front fee of approximately $1,000 to $3,000 per loan to be eliminated and promises to make a "free-will offering of 50% of the REDEEMED mortgage." The redeemed mortgage (dubbed a refinance loan in websites promoting this scheme) refers to a subsequent equity loan obtained from a separate lender based upon the Dorean Group’s fraudulent recordation representing that the initial mortgage loan secured by the property had been fully satisfied.
(2) Transfer of Title: Once the initial fee is paid, the Dorean Group forms a trust with its client, the trustees of which are Heineman and Johnson. The client records a quitclaim deed with the local county recorder’s office, which allegedly transfers the borrower’s title interests to this trust. However, typical mortgage agreements between a borrower and a lender require the lender’s consent before the borrower may transfer his/her title interests. According to the superseding indictment, no lender granted Heineman, Johnson, or the Dorean Group permission to act on behalf of the borrower under the applicable mortgage agreements.
(3) Self-Executing Presentment Packet: The Dorean Group subsequently mails a "self- executing presentment packet" to the lender of its client’s loan. In this packet, the Dorean Group claims to act on behalf of the borrower, demanding proof of the validity of the lender’s loan "to the unilateral satisfaction of the Dorean Group" within 10 days. If this burden is not met, documents in the packet allege that, due to the lender’s "tacit assent" and "default," Heineman and/or Johnson of the Dorean Group will act as the lender’s agent and attorney-in-fact as to the loan and the secured property. In addition, if the lender elects to attempt to prove the validity of its loan, but fails to do so "to the unilateral satisfaction of the Dorean Group," the lender, according to the packet, is liable to the Dorean Group for damages twenty times the amount of the loan.
(4) Substitution of Trustee: After 10 days has elapsed, Heineman, Johnson and the Dorean Group prepare a "Substitution of Trustee," or, depending on jurisdiction, a "Specific Power of Attorney" or "Power of Attorney," that is recorded as part of the title to its client’s property. This recordation claims that Heineman and/or Johnson is acting as agent and attorney-in-fact on behalf of the lender. According to the indictment, no lender has authorized Heineman, Johnson, or the Dorean Group to act either as its agent or attorney-in-fact.
(5) Full Reconveyance: Under this false representation, Heineman, Johnson and the Dorean Group prepare a "Full Reconveyance" or, depending on jurisdiction, "Discharge of Mortgage" or "Satisfaction of Mortgage," that is recorded as part of the title to its client’s property. In this document, Heineman and/or Johnson of the Dorean Group – allegedly acting on behalf of the lender – represents that the loan secured by the property has been fully satisfied, when the loan had not been repaid. In this recordation, Heineman and/or Johnson purportedly transfers the lender’s secured interests in the client’s property to the client’s trust established by the Dorean Group, causing the property title to falsely appear unencumbered.
(6) Subsequent Home Equity Loan: With what appears to be free and clear title, and pursuant to its standard client service agreement, the Dorean Group directs its clients to seek a subsequent "refinance loan,"or home equity loan, from a separate lender with the apparently-unencumbered property serving as the security for the loan. When the loan disbursement is obtained, the Dorean Group receives 50% of its proceeds, the Dorean Group broker (who solicited the client) receives 10-25% of the funds, and the client keeps the remaining 25-40% of the loan. The refinance loan is subject to the Dorean Group’s debt elimination program and is not repaid.
Mr. Heineman and Mr. Johnson are also each charged in the superseding indictment with contempt of court. On July 6, 2005, the Civil Division of the United States Attorney’s Office filed a complaint for injunctive relief, and a motion for a temporary restraining order directing that Messrs. Heineman and Johnson, doing business as the Dorean Group, to cease engaging in their mortgage elimination scheme. On July 6, 2005, Judge William H. Alsup granted the government’s motion for a temporary restraining order. On August 1, 2005, Judge Alsup converted the temporary restraining order to a preliminary injunction, prohibiting the Dorean Group from engaging in any activities related to its mortgage elimination scheme, pending final judgment in the civil action. According to the superseding indictment, after they were served with the temporary restraining order and the preliminary injunction, respectively, Heineman and Johnson executed an "appointment of successor trustee" to allegedly transfer their interests as trustees of the Dorean Group’s clients’ trusts to a Dorean Group employee.
Mr. Heineman and Mr. Johnson were previously arraigned on the initial indictment before Judge Wayne D. Brazil in Oakland on February 13, 2006. Mr. Heineman and Mr. Johnson appeared before Magistrate Judge Brazil for arraignment on the superseding indictment on February 17, 2006, at 10:00 a.m. They are also set to make an initial appearance before Judge D. Lowell Jensen in Oakland on February 17, 2006, at 11:00 a.m. No bail arrest warrants were issued for Mr. Julian, Mr. LeCompte, Ms. Magoon, and Mr. Tobias.
The maximum statutory penalty for each count of mail fraud in violation of 18 U.S.C. § 1341 and affecting a financial institution is 30 years imprisonment and a fine of $1,000,000, plus restitution. The maximum statutory penalty for each count of bank fraud in violation of 18 U.S.C. § 1344 is 30 years imprisonment and a fine of $1,000,000, plus restitution. The maximum statutory penalty for each count of conspiracy to commit mail fraud, wire fraud and bank fraud in violation of 18 U.S.C. § 1349 is 30 years imprisonment and a fine of $1,000,000, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment contains only allegations against an individual and, as with all defendants, Mr. Heineman, Mr. Johnson, Mr. Julian, Mr. LeCompte, Ms. Magoon, Mr. Tobias, and the Dorean Group must be presumed innocent unless and until proven guilty.
James Keller is the Assistant U.S. Attorney who is prosecuting the case. The prosecution is the result of a fourteen-month investigation by the Federal Bureau of Investigation. Several law enforcement entities, including the Alameda County District Attorney’s Office, the California Attorney General’s Office among many others, provided valuable assistance and information about this alleged scheme to the United States Attorney’s Office.
And: the cases have been joined and assigned to Federal judge Alsup. this guy is the judge who ordered the feds to investigate Dorean in the first place.
So what is the latest on this situation? anyone know?
As a civil matter, it was over and done with months ago. The Dorean "process" is legally meaningless and participants are exposed to whatever steps the lenders take to restore their interest in the property if they want to.
Criminally, the case drags on in the Northern District of California with the next hearing in early September but it won't have any affect on the mortgage elimination program one way or the other.
Two of the indicted, Johnson and Heineman, have been throwing up a barrage of old, legally bogus arguments and mythological conspiracy theory and quasi-religious nonsense but it hasn't done anything but create some amusement.
The other parties are represented by counsel, and have to be either laughing or wondering how to keep themselves from being aligned with the nonsense.
Apparently, Heineman and Johnson are content to play the martyr role without regard for what happens to anyone else.
Participant "victims" may still be able to get themselves out without prosecution if their attorney contacts the magistrate the court has set up to nullify the bogus trusts.
Last edited by Judge Roy Bean; 08-29-2006 at 05:17 AM.
Brother Tobias formally plead guilty on 9-26 and will be sentenced on 12-19 according to the current docket. Appears he is getting probation or the like for testimony / co-operation.
plea on September 19, 2006.
independent research and have agreed to meet and confer once again early this week.
change of plea on September 26, 2006 at 2:00 PM.
On 10/14/04 , brother Tobias was convicted on one each of 1) conspiracy to defraud the US, 2) influence/injuring an officer/juror/witness, and 3) intimidation or force against a witness.
On 2/15/05, he was sentenced to 24 months in federal prison.
On 3/14/05, he went to prison. His projected release date is 12/08/06.
Government provided the status of two other co-defendants: 1) William Julian was arrested in Panama and is awaiting extradition; and 2) Sara Magoon is in Canada, and is arranging to appear here voluntarily.
Court VACATED the trial and pretrial conference.
by mid-December. Accordingly, the trial date currently scheduled for JANUARY 8, 2007 is hereby VACATED. The pretrial conference currently scheduled for DECEMBER 18, 2006 is also VACATED. A status conference will be held on DECEMBER 11, 2006 AT 2:00 P.M.
offers from the government. If one or both are to be signed by defendant(s), it should be done in the presence of Judge Spero and AUSA Keller without qualification and the original should be kept by AUSA Keller to bring to any plea change hearing.
Rodney Austin, Tega Cay, South Carolina was given a 10-year suspended sentence and placed on two years probation after pleading guilty to obtaining a signature or property with a value of more than $5,000 under false pretenses. Charges against his wife, Deborah Austin, Tega Cay, South Carolina, were dropped. Austin was charged in connection with his role as a broker for the Dorean Group. According to an article in the Fort Mill Times, the Austins allegedly set up trusts linked to Dorean on three different properties in Tega Cay, South Carolina but were only charged in connection with one of the properties. Both defendants also reportedly agreed to testify against Dale Scott Heineman and Kurt Johnson.
It sounded too good to be true; Pay off your mortgage and pocket $60,000 to boot.
Unfortunately, some Tega Cay residents had to find out the hard way that in most cases, what sounds too good to be true usually is. One couple even faced jail time for their in-volvement in the alleged sch-eme. Rodney and Deborah Austin, of 8041 Windjammer Drive, were charged with being involved with a "much larger scheme," according to Assistant Solicitor Kevin Brackett.
After agreeing to testify against the accused ringleaders of a nationwide mortgage debt elimination scheme, the Austins may not see any jail time.
The charge against Deborah Austin, obtaining a signature or property with a value of more than $5,000 under false pretense, was dropped in return for her and her husband's cooperation.
Rodney Austin, who Brackett described as the "brains" of the couple's operation, was given a 10-year suspended sentence and placed on probation for two years after pleading guilty to the same charge his wife faced.
"In the fraud food chain these guys were bottom feeders," Brackett said. "We like to catch the little guys but we want to make sure the big fish get hammered too."
According to Brackett, the Austins were involved with an organization called the Dorean Group based in California. Dorean was run by two men, D. Scott Heineman and Kurt F. Johnson.
According to a federal indictment against Heineman and Johnson, the scam worked like this: an agent for the Dorean Group, like the Austins, lured a potential client with the promise of eliminating his or her mortgage and making $60,000 or more in the process.
The Dorean Group charged a fee that ranged from $1,000 to $3,000 per debt to be eliminated and the clients would promise to give the Dorean Group half of the redeemed mortgage. After the initial fee the Dorean Group and its client would form a trust naming Heineman and Johnson as trustees. The client would then file a quitclaim deed supposedly transferring the client's title interests to the trust.
Next, the Dorean Group mailed a "self-executing presentment packet" to its client's creditor demanding the creditor prove the validity of its loan to the sole satisfaction of the Dorean Group within 10 days. If the creditor didn't answer in time documents in the packet claim that due to the creditor's "tacit assent" and "default" Heineman and/or Johnson, "act as the lender's agent and attorney-in-fact as to the loan and the secured property."
Also, if the creditor chose to prove the validity of its loan but did not meet the Dorean Group's satisfaction, documents in the packet claim the creditor was liable to the Dorean Group for damages 20 times the amount of the loan, according to the indictment.
After the 10-day period elapsed the Dorean Group filed a "Substitution of Trustee," "Specific Power of Attorney" or a "Power of Attorney," depending on the jurisdiction, claiming Heineman and/or Johnson were acting as the agent or attorney-in-fact for the creditor.
Allegedly acting as the creditor's agent, Heineman and/or Johnson would prepare a "Full Reconveyance," a "Discharge of Mortgage" or a "Satisfaction of Mortgage," depending on the jurisdiction. That document would state the mortgage had been paid when in fact it had not, "causing title of the property to falsely appear free and clear of any encumbrances," according to the indictment.
Finally, came the payoff in which the client was directed by the Dorean Group to use the newly cleared title to obtain another home equity loan from another lender. Once the funds are disbursed the Dorean Group got 50 percent of the loan, the Dorean Group agent that brought in the client would get a 10-25 percent cut and the client would keep what was left.
The new loan would then be subject to the same scam and never be repaid.
According to records obtained by the Fort Mill Times, including legal advertisements placed in another local newspaper, the Austins set up trusts linked to Dorean on three different properties in Tega Cay. However, they were only criminally charged in reference to one of the properties, Brackett said. Only one of the victims still lives in South Carolina and pressed charges.
Heineman and Johnson were already in prison awaiting trials when the Austins were arrested last October. Shortly after their arrests federal holds were placed on the Austins. According to Brackett, a U.S. Attorney and an FBI agent talked to the Austins before they agreed to testify against Dorean.
"Their contention was they were suckered by Dorean too," Brackett said.
Consider the judgment against Dorean group client Greg Poppin, of California, who paid to get got a trust set up in Johnson & Heineman's swindle for a property in Grass Valley.
After ordering the bogus Dorean documents cancelled, rendered void and expunged from the county records, the judge left it up to the Plaintiff (lender) as to whether they could go ahead and foreclose, or in addition, collect damages jointly and severally against Heineman, Johnson and Poppin in the amount of nearly $390,000 (plus interest) and over $16,000 in attorney's fees and costs. All of which stands there and collects interest until paid. With the perpetrators incarcerated and facing long sentences, Poppin (the client) was left to face the music.
Gov has offered them 20 years at Club Fed.
The 11th is our next date and it is unique among all our dates because I have no goal, no direction from the Lord except to say it is finished. As my faith matures to comprehend the great accomplishments of the Lord it ironically or paradoxically becomes more childlike. I truly am helpless yet the love of my caretaker is steadfast and trustworthy. There is an enhancement to the truth of Christ’s diligent intellect over my affairs when I’m confronted with the body of Christ. Many of you have been used in a special way as the confirming voice of God. It takes childlike faith to trust the power of Christ in you. Winnie, Karen S., Steve H., Becky B, Dee, Bob, Lynette, A. Corrazzo, Mark G., Swami, Doug Cav. And Doug Cam. All of you and others not mentioned here have strengthened my faith by your obedience to our Lord. Trust this that your eternal reward will be enhanced with blessings here on earth. Many others betrayed me and rewarded my love with their cowardice. This was a constant sorrow which made your sweet offering of obedience all the more soothing. As I submit this heartfelt thank you let me boldly say that we shall now see the power of our mighty Lord that justifies our boast among those who are perishing. Our God reigns and you are the proof of it. I’m proud of all of you in the spirit.
On 11-21 we went before Judge Spero for another settlement conference. This is a face to face sit down with the alledged Judge to sign a plea agreement. Their offer of 20 years can’t be taken serious because nobody signed it. They said if I signed it they surely would. That is them making me an offer to make them an offer. That is a jurisdictional trick I won’t fall for. Spero had a copy of our original plea agreement with our proper commercial endorsements upon them but not the originals apparently retained by our counsel Mr. Kubitz. This created another problem in that counsel has indicated by his behavior we are not to enter an agreement. Spero went into how you cannot sign a rule 11 plea agreement without recourse. Here’s where the Acting classes and poker bluffing start to take shape. If we were at law the intent of agreement would suffice and words would not hinder the result. If though we truly are at commerce my endorsement quashes their goal. This was obvious when Spero became an emotional rant on how they were getting mad at my games and they were surely going to give me life. I said “Wow! Doesn’t anyone ever win a trial” just to break it up a little. I have to tell you I am amazed how grown men can find a sense of honor in a childish racket. Well no deal I guess, pleading guilty is harder than you can imagine. We left with our next date 12-11 to find out if the other defendants are coming and a whole lot more I won’t discuss at this time. Many of you hear of this independently from our God. I’m happy about it also!
Latest court doc from the case.
It mentions Sara Jane has been charged.
scheme. Some brokers did in fact hire agents to assist in recruiting clients.
proven. The clients were also informed that if they encountered legal obstacles to the "program,"
discussed the operation and success of the program with the assistants.
the brokers to prove the existence and operation of the scheme and as co-conspirator statements.
existence and operation of the scheme.
Northern District of California, Assistant United States Attorney James E. Keller, and Mary K.
have exclusive original jurisdiction over â€˜all offenses against the laws of the United States.'"
See U.S. v. Hanson, 2 F.3d 942, 945 (9th Cir. 1993).
wholly inapplicable to federal criminal statutes.
(2) The Uniform Commercial Code governs this criminal action.
jury, and would invade the Court's province in instructing the jury on the law.
Is there any law applicable on this case?

References: V. 
 § 1341
 § 1344
 § 1349
 § 3553
 v.