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Broker Gets 10 Years For Mortgage Scams

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By THOMAS W.  KRAUSE | The Tampa Tribune

Published: December 7, 2007

TAMPA - Between March 2002 and March 2004, a Tampa mortgage broker refinanced loans for elderly homeowners of modest means, scamming more than $400,000 to supplement his legitimate income that came close to six figures a year.

He testified this morning that he has nothing to show for his two-year windfall except about $1,500 in a bank account.

In November, Michael William Danish, 47, pleaded guilty to aggravated white collar crime, failure to disburse funds and notary fraud.

At today's sentencing hearing, some victims said they wanted to see Danish in prison. Others said they just wanted their money back.

Circuit Judge Mark Wolfe said he, likewise, wanted Danish's victims to see restitution.

"I'm going to give him an opportunity to do that," Wolfe said. "But first, he's going to do some time."

Wolfe sentenced Danish to 10 years in prison, followed by 20 years of probation. He must pay back all the money before his probation ends, plus $5,000 to each of two state investigative agencies that caught him.

J. Wilson, a financial crimes investigator with the Florida Bureau of Financial Investigations, said mortgage scams are entirely too common.

"This year," he said, "I've closed 15 cases similar."

According to information from the Florida Attorney General's Office, Danish worked with a salesman and a title company. He targeted elderly, and often sick, victims. Many were indigent or retired from lower-middle-class jobs.

Under the guise of helping purchase new air conditioner systems, Danish took out large mortgages on their homes and pocketed the money. Sometimes, investigators said, he made a few token payments. Other times, he kept all the money. Some victims did not even know they had new mortgages.

Jay Sullivan, the son of a woman who suffers from Alzheimer's disease, said Danish convinced his mother to take out a loan. Her family now is paying lawyers to help work through the outstanding debt.

"He placed her in a hole financially," Sullivan said. "We're still going through it. I'd like you to give him the maximum if you can."

Had Wolfe given Danish the most prison time allowed under the law, he would have been imprisoned for 65 years.

Henrietta Witchard, 61, testified that she has no idea how much money Danish cost her. At first, Danish convinced her that she needed to pay him $1,100 for a life insurance policy in case she died before she could pay off the loan. When she found out her health problems made her ineligible for life insurance, she asked for the money back. Instead, Witchard said, she got excuses.

Witchard also was supposed to get a check for $6,000 after the loan closed but it never arrived. She said she has medical bills she cannot pay.

"I'm stressing," Witchard said. "I'm stressing."

Burk Smith, 49, said his wife and Danish's wife have been friends since they were 14 years old. He wanted to refinance his house and Danish offered to help.

While looking at a computer spreadsheet, Smith testified, he realized he was missing about $10,000. At first, Danish told him the check was lost. Then he blamed it on a bank error.

"His last words to me," Smith said, "on a Monday, about 1 in the afternoon, four years ago, he said 'If I have to hold a gun to their head, I'll get you your money.' "

Eventually, Smith said, he learned the check went into Danish's bank account.

"He's a liar, a thief and he will do it again," Smith said.

Joseph Broadus, a lawyer who represented seven victims, testified that he has worked long hours to get deeds restored. Still, he said, he cannot get his clients' money back.

"These people paid $5,000, $6,000, $7,000 to start up loans whose only purpose was to feather Mr. Danish's nest," Broadus said. "Unlike any other crook, he charged them a fee to steal their money."

When Danish took the witness stand, he apologized to his victims and asked for leniency. He cried, saying he had a 13-year-old son whom he did not want to know about his problems.

Danish said he now works for a pool company and could make payments of $1,000 to $1,500 per month in restitution.

"I feel I can still help these people, your honor," he said. "I just want to do what is right."

Over the two years when Danish was scamming people, Assistant Statewide Prosecutor Mark Campbell said, Danish made close to $90,000 per year honestly. His wife made about $20,000 per year. He scammed another $400,000.

Campbell said he had one question: "Where is it?"

Danish said he gave some of it back and gave some to his partners.

What about the remaining $400,000?

"It's gone," he said. "It was just wasted."

Reporter Thomas W. Krause can be reached at (813) 259-7698 or tkrause@tampatrib.com.

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