TERRE HAUTE — The Indiana Secretary of State’s office is leveling allegations against a Terre Haute mortgage loan company, a Sullivan title company and several individuals.
In an administrative complaint served Tuesday, the Secretary of State’s office alleges that Affordable Lending of 2221 Wabash Ave., knowingly processed false loan application documents on behalf of two property buyers. The two buyers bought 23 different properties around Terre Haute in 2005 and 2006, according the complaint.
The president of Affordable Lending, Eric J. Wuestefeld, did not respond before press time Tuesday evening to a message left with his office in the afternoon. Affordable Lending is registered with the Secretary of State’s office under the ownership of Extreme Investments of Terre Haute Inc.
“Our point is that [borrowers] lied … and we believe that the brokers helped them lie,” Secretary of State Todd Rokita said Tuesday.
The complaint alleges that the borrowers claimed several different properties as “primary” residences on loan application documents. Primary residences usually receive loans on more favorable terms than investment properties.
In some cases, homes listed as “primary residences” were bought by the same individual just days or weeks apart, according to the complaint.
The borrowers also allegedly failed to disclose several outstanding loans in their loan applications.
The official complaint names a Sullivan-based title company, Hoosier Title Inc., as allegedly taking part in the activities. The title company handled the closings for each of the 23 mortgage transactions, according to the complaint.
“They had to have known” what was going on, Rokita said, stressing, however, that these are simply allegations at this point.
The owner of Hoosier Title Inc. could not be determined by press time. Two individuals listed as employees with the company in the complaint did not have telephone numbers listed in or around Sullivan.
The people involved will have a chance to defend themselves in a hearing before the Indiana Securities Commission, Rokita said. None of the parties at whom allegations have been leveled have been arrested or charged with any crimes.
The Secretary of State’s office is seeking civil fines of up to $300,000 from some of the parties involved as well as restitution to the lending banks at 8 percent interest. State officials also are seeking to prevent some of the individuals associated with Affordable Lending from acting as loan brokers or originators anytime in the future in Indiana.
The alleged fraud was discovered, Rokita said, when the mortgages were sold on the secondary loan market and, “by coincidence,” some of them ended up at the same secondary loan buyer. These buyers noticed some of the mortgages had the same buyers listed as owning more than one “primary residence,” Rokita said.
“That’s what tipped us off,” he said, adding investigators then “dove into the broker’s office and looked through all his files to put all the pieces of the puzzle together.”
If the allegations are true, the direct victims in this case are the banks and other lenders who made loans to the borrowers based on false information, Rokita said. The indirect victims would be ordinary Hoosiers whose property values fall when property foreclosures happen in their neighborhoods and whose borrowing costs rise because of numerous bad loans.
It is still unknown whether additional names will be added to the complaint, Rokita said, adding the investigation is ongoing.
“This is the beginning of the process, not the end,” he said.
Arthur Foulkes can be contacted at (812) 231-4232 or arthur.foulkes@tribstar.com.
Local & Bistate
Valley loan company faces civil fines
Secretary of State’s office alleges Affordable Lending processed false applications
- Local & Bistate
-
-
Packing the hall
If you didn’t come early, the seats were hard to find.
-
Alternative-fuel project has Rose, ISU students all charged up
The future of Earth’s auto industry is intertwined with the career prospects of local university students, and a world-class team shined with green energy Sunday.
-
Montford Point Marine
In 1943, 19-year-old Ezell Odom was on the sandy beach of a tiny South Pacific island about 7,000 miles from his parent’s home in Terre Haute.
-
K-9 officer Shadow honored as a hero
A Terre Haute K-9 officer injured in the line of duty has been honored as a hero by the Indiana Veterinary Medical Association.
-
Freezin’ for a Reason
Hundreds lined up outside Hulman Center amid frigid air to participate in a warm-hearted cause.
-
Even as law, right-to-work dominates crackerbarrel
The flames of the right-to-work debate were gone, but the coals still seemed to smolder.
-
Vigo School Board to give OK on bonds for DeVaney project
The Vigo County School Board will meet at 6 p.m. Monday in the administration building, 686 Wabash Ave.
-
Bridging the gap to ‘forever’
They can be taken from their homes by strangers for reasons they may not understand, with no possessions other than the clothes they are wearing.
-
Students showcase keen problem-solving skills at Rose-Hulman
For the 16th straight year, Honey Creek Middle School students came out on top in the Wabash Valley MATHCOUNTS competition at Rose-Hulman Institute of Technology.
-
Ivy Tech to celebrate Black History Month
Ivy Tech Community College will celebrate Black History Month with a series of events at its campuses statewide.
-
Whitney Houston, superstar of records, films, dies
Whitney Houston, who ruled as pop music's queen until her majestic voice and regal image were ravaged by drug use, erratic behavior and a tumultuous marriage to singer Bobby Brown, has died. She was 48.
-
Giant welcome home for Steve
Terre Haute was suddenly home to thousands of cheering New York Giants fans Friday as residents welcomed Super Bowl champion Steve Weatherford back home for a parade.
-
‘One for Terre Haute,’ Steve tells crowd at North
“This one was for Terre Haute,” native son Steve Weatherford proclaimed Friday as he shared his Super Bowl victory with the community that helped send him on the path to a world championship.
-
Hometown support vital to success, Weatherford says
Steve Weatherford said Friday he wouldn’t be celebrating a Giants’ Super Bowl victory if not for the support he’s received from his hometown, his parents and mentors in his life.
-
Craning for a rare glimpse
A visitor from the Far East has naturalists flying to Linton, hoping some good comes from one bird’s bad directions.
-
Vigo’s primary election filings complete
The slate is set for the May 8 primary election, with the race for three at-large seats on the Vigo County Council drawing the largest pool of candidates at the county level.
-
Documentary on electric vehicles plays Sunday at Rose
The rising popularity of electric vehicles and their impact on the world eco-system is the focus of a documentary, “Revenge of the Electric Car,” being presented at 3 p.m. Sunday in Rose-Hulman Institute of Technology’s Hatfield Hall Theater.
-
Man gets 10-year sentence in battery case
A West Terre Haute man received a 10-year prison sentence Friday after pleading guilty to aggravated battery for beating a friend caught in bed with the man’s wife.
-
Asian hooded crane lands in Greene County wildlife area
Bird watchers are flocking to a southwestern Indiana wildlife area to try to catch a glimpse of a crane usually spotted only in Asia.
-
Slow drips: It’s maple syrup season in Indiana
More seasonal, colder temperatures will hit the Wabash Valley this weekend, which is ideal weather for maple syrup production, said Keith Ruble, superintendent of the Vigo County Parks and Recreation Department.
However, Ruble voices concern that this year’s maple syrup season may be short.
-
Downtown restaurant celebrates expansion
The streets of Terre Haute were chilly Thursday night, but for the glow of hot pasta inside Louise’s Pizzeria and Cafe.
-
Contract signed for new Y
Papers are signed and the ink is in place for a new YMCA to operate in Terre Haute.
-
City to impose $30 release fee on towed vehicles
The Terre Haute City Council voted without opposition Thursday to impose a new $30 release fee on vehicles towed and impounded by the police as part of a criminal investigation.
-
Valley educators cautious on Indiana’s ‘No Child’ waiver
Indiana is one of 10 states to receive a waiver from federal No Child Left Behind requirements.
-
Driver dies after Illinois school bus crash
“Brace yourself. Brace yourself,” Fay Pickering shouted to her students just before the school bus she was driving crossed U.S. 40 and landed in a ditch Thursday morning.
-
Trial date set for former WTH police chief
A July 23 trial date has been set for a former police chief of West Terre Haute accused of theft.
-
Motorcycle gang member pleads guilty in federal court
A member of an Indianapolis motorcycle gang who delivered methamphetamine to a Terre Haute dealer has pleaded guilty to drug charges in federal court.
-
July trial date set for mother charged with child neglect
A July 30 trial date has been set for a Terre Haute mother charged with neglecting and battering her toddler.
-
Business hosting SPPRAK fundraiser
Java Haute is hosting the latest fundraiser sponsored by SPPRAK — Special People Performing Random Acts of Kindness.
-
Valley high school cooking competition under way today
Clabber Girl Corp. and Gordon Food Services will host the fourth-annual High School Chef Competition, beginning today through Saturday, and again Feb. 18, in the Culinary Classroom at Clabber Girl.
- More Local & Bistate Headlines
-
Raw Video: Greek Rioting Ahead of Austerity Vote
Greece Passes New Austerity Deal Amid Rioting
Coroner: Houston Autopsy Results Weeks Away
Pop Music Superstar Whitney Houston Dies at 48
Raw Video: Child Rescued After Kosovo Avalanche
Raw Video: Whitney Houston's Last Performance
Reaction to Houston's Death at Clive Davis Party
Whitney Houston's Church Mourns Her Passing
Severe Cold Wreaks Havoc in China
Police: Houston Found Dead in Her Hotel Room
Fans 'Speechless' Over Houston's Death
Fuel Removal Under Way on Capsized Italian Ship
Snow Strands Italian Towns
79 Turtles Seized at Shanghai Airport
Video of M.I.A's Obscene Halftime Gesture
Paul Suffers Narrow Loss to Romney in Maine
Raw Video: Italy's Mount Etna Bursts Into Life
Recording Superstar Whitney Houston Dead at 48
Today in History for Tuesday, February 12th
Stocks Fall Sharply As Greek Deal Is Held Up
'Rumor Has It' Adele's Rolling in the Grammys
Tiger Woods and Phil Mickelson after the Pebble Beach Pro Am-2/12
Exclusive Video: Bobbi Kristina Leaving Hospital
2012 Grammys: Rihanna
Raw Video: Aurora Borealis As Seen From Space
2012 Grammys: Taylor Swift
Exclusive Video - Whitney's Bodybag
FUEL TV: Punk Payback Gym tips
Whitney's Final Days - EXCLUSIVE
Romney Tops Santorum in CPAC Straw Poll
First glimpse of Blue Ivy Carter
Angry Dad Shoots Teens Laptop
Peek inside Barbie's closet
Absolute Lin-sanity
Madonna's Daughter Shaves Head
5 Killed in Wrong-way Crash on I-10 in La.
Test on Comforter in Powell Unit Shows Blood
Hero Driver Saves Kids From Burning Bus
