May 09, 2008
Attorney General Bill McCollum News Release
March 25, 2008
  en Español

Media Contact: Sandi Copes
Phone: (850) 245-0150

Former Vice President, Account Executive of Subprime Mortgage Lender Charged with Racketeering, Mortgage Fraud and Grand Theft

~ Executives of subprime mortgage lender and two Hillsborough County men organized scam involving fraudulent mortgage loans ~


TALLAHASSEE, FL – Attorney General Bill McCollum and Florida Department of Law Enforcement Commissioner Gerald Bailey today announced that a former vice president and a former account executive for one of the nation’s largest subprime lenders have been charged with operating a mortgage fraud scheme that spanned more than two years and involved loans in Hillsborough, Pinellas and Polk counties. Orson Benn, former vice president of Argent Mortgage Company and Constance Golder, an account executive, were part of an elaborate scheme to defraud that included two mortgage brokers, David Tuggle, Jr., and Eric Steinhauser, who were also charged today. The four individuals will be prosecuted by the Attorney General’s Office of Statewide Prosecution.

“Mortgage fraud threatens the very essence of the American dream – the goal of home ownership,” said Attorney General McCollum. “Unfortunately, Florida ranks first in the nation for the number of mortgage foreclosures, making our citizens who are struggling to protect their homes even more susceptible to fraud, and we must continue to aggressively investigate and prosecute those whose criminal behavior perpetuates these illegal actions.”

Tuggle and Steinhauser, as the mortgage brokers for Tampa-based Sunstate Mortgage Company, submitted more than 300 mortgage loan applications to Argent Mortgage Company. Benn, as vice president of Argent, became actively engaged with Tuggle and Steinhauser and approved or oversaw the approval of their fraudulent loan applications. Investigators believe Tuggle and Steinhauser paid Benn more than $100,000 for insuring the approval of these fraudulent loans. As an account executive for Argent, Golder helped facilitate the process by serving as a liaison between Benn and Sunstate Mortgage.

Of the 300 loan applications, more than 280 were funded and collectively valued at more than $34 million. Eleven of those loan applications are the basis for today’s charges Argent Mortgage has cooperated with investigators and provided information and documents to support the investigation. The joint investigation was conducted by the Office of Statewide Prosecution, the Florida Department of Law Enforcement (FDLE), the Hillsborough County Consumer Protection Agency, the Tampa Police Department and the Pinellas County Department of Justice.

“The continued investigative efforts of our law enforcement partners has resulted in the arrests of four individuals who assisted in preying on hundreds of individuals,” said FDLE Commissioner Bailey. “We will continue to work aggressively to protect our citizens against financial fraud.”

“The second phase of this case involving these two mortgage brokers once again shows the criminal relationship between key Argent representatives and the local brokers,” said Kevin L. Jackson, Chief Investigator, Hillsborough County Consumer Protection Agency. “Many Florida consumers have paid a price due to these fraudulent practices.”

This is the second mortgage fraud case involving Benn and investigators believe there may be numerous mortgage brokerage companies in Florida with whom Benn perpetrated similar schemes. Benn was previously charged with similar charges in a case that is currently pending in the Polk County Circuit Court. After the initial investigation of Benn’s activities, the investigation was expanded to include additional targets that were actively engaged in fraud with Benn, who has been charged with racketeering, conspiracy to commit racketeering, mortgage fraud, and grand theft. If convicted, he could face up to 95 years in prison. Golder, Tuggle and Steinhauser have been charged with conspiracy to commit racketeering. If convicted, each could face up to 30 years in prison.