I Score Some Points On The "Universal Mortgage" Fraudsters

Image of Irene Thomas

So back when I was doing some independent digging into the fascinating phenomenon of mortgage fraud, and (among other things) I kicked information to an investigative reporter in Arizona (click here) one of the things I did...

...was to systematically notify all the proper authorities in EVERY STATE WHERE UNIVERSAL MORTGAGE WAS LICENSED TO DO BUSINESS about the shenanigans which were taking place in Minnesota. Yeah, that was a lot of emails. I spent about two days of my freaking Christmas vacation doing it, too, but that's my idea of a good time. I was obsessed and the state authorities were--in their aloof bureaucratic way--responsive and grateful.

Especially FLORIDA. But I'm getting to that.

The Lovely And Talented...Well, LOVELY Irene Thomas

Oh, yeah, by way of explanation...the image above is Irene Thomas, a stripper from St. Cloud, Minnesota, who was involved with Donald Walthall of Universal Mortgage and became the owner of something like NINE HOUSES. (Take it easy, people, she's got clothes on. It's NOT "adult content," sheesh!) The magazine, as you can see, is "VBBLAZING," purportedly "the illest magazine on the net."

Yeah, well, that's in dispute.

Hoover Is On The Case

In any case, of all the states I contacted, FLORIDA seemed the most interested. There is a guy named R.L. Hoover of the Office of Financial Regulation who was very polite and helpful, but he carefully explained his "mandate" (or whatever word he used) didn't allow him a lot of investigative latitude over a mere INDICTMENT in another state. If there were a conviction, a plea bargain, that would be another matter. I should notify him (Hoover) about that. I said I would.

Well, I didn't manage to contact Hoover the very day of the indictment...I think it was several days or more than a week after. And I can't remember who called who...if Hoover was returning my voice mail or if I was returning his. It was a crazy time. I was living on Red Bull and rolling up as much highway as I legally could in 11-hour days. I do remember I was working for my employer and fueling up with diesel in Ohio or possibly Indiana when my cell phone rang--stuck in a mesh pocket over the cab area---and it was R.L. Hoover, and I had to TALK LOUD over the sound of the diesel engine and "reefer unit."

But I confirmed it. Yeah, Walthall pled out. It's official, sir. Go ahead and Google it, I urged, you'll find the confirmation you need soon enough.

Well, a letter came with a lovely Great Seal of Florida on the envelope and letterhead...and it took me a while to pick up my miscellaneous "snail mail," since I do many things electronically and eschew paper...and then the letter was kicking around in my backpack for a while, next to my free promotional DVD for "The Battle In Seattle," but here's the letter...

Ahem!

Re: Complaint Activity Number: CP20080200221
Entity/Company: UNIVERSAL MORTGAGE AGENCY MORTGAGE INCORPORATED

Dear Mr. Hoff:

The Office of Financial Regulation (Office) has completed its review of the complaint you filed concerning the above referenced company and the owner/Principal Broker, Donald Walthall. Our review included a thorough review and analysis of your complaint, information and documentation provided by Hennepin County, Minnesota and written/oral statements of the parties involved.

We have confirmed that Walthall has been found guilty of Theft by Swindle (Mortgage Fraud) and will be sentenced in October, 2008. Accordingly, this information will be acted upon by this Office. You will not normally be informed of the outcome of whatever action is taken.

Thank you for bringing this matter to our attention and for your patience and cooperation throughout our review process. If you have any questions, feel free to contact this office.

Sincerely,

R.L. Hoover, Area Financial Manager
Pensacola Regional Office
Etc.

Yeah. Yeah, that's a good feeling...knowing somewhere in Florida there's an investigative file that my complaint initiated...since word didn't filter down from Minnesota fast enough, and info needed to be sped along to the proper public officials...and in that file there's my name, and Donald Walthall's name, sort of tangled up together like two drunk buddies leaving a...night club or something.

When Walthall goes to prison...and who knows, maybe he'll do time next to Thomas Balko and Jon Helgason of T.J. Waconia...Walthall may find it useful to bring along some glossy images of Irene Thomas.

I mean, you know, I understand images like that are of considerable value in a hard, lonely, male-only prison environment.

However...fair is fair, and I'll say this much about Donald Walthall: I advocate a form of "let the punishment fit the crime" for Donald Walthall, just as I do for the T.J. Waconia fraudsters. It would be good for Walthall to be forced to spend his sentence under electronically monitored "house arrest" in one of his "fraud houses" in North Minneapolis, restricted to a one block area. Walthall could help turn that block into an urban utopia with his talents and energy...or he can live in a hellhole he helped to create by his own mortgage fraud.

The choice can be his.

ADDENDUM: Blog post corrected for spelling of Jon Helgason's last name.