The news broke about 10:30 this morning that North Miami Mayor Lucie Tondreau is being charged by the FBI for mortgage fraud. The first Miami Herald article published had few details other than to report that other defendants were involved and that there would be a hearing in Miami federal court this afternoon.
That article has since been updated. Channel 10 has also posted an updated story.
Attorney Benedict P. Kuehne told the Herald that the Mayor is out of town and that he’s arranging for her to turn herself in when she returns today. NBC Miami reported shortly after noon today that “she was told the FBI was at her home Monday and she was heading back to South Florida to find out what it’s about.”
The Herald named Karl Oreste as one of the defendants who “is scheduled for his first appearance this afternoon … before Magistrate Judge John O’Sullivan. According to his Facebook page, Karl Oreste is a native of Saint-Louis du Nord, Haiti and currently lives in Davie, Florida. He is not Facebook friends with Lucie.
Karl Oreste is the Registered Agent and CEO of the now defunct KMC Holdings Corp., located 781 NE 199 Street, Suite 206, Miami, Florida 33179. This corporation was administratively dissolved on September 27, 2013 for not filing its 2013 annual report. Mr. Oreste lists a Miramar address as his residence and/or office.
That’s all the information I have right now, but I will update this post as soon as I hear any news.
Stephanie Kienzle
“Spreading the Wealth”
UPDATE:
Wilfredo A. Ferrer, the United States Attorney for the Southern District of Florida, issued a News Release this afternoon, Four Individuals Charged in Multi-Million Dollar Mortgage Fraud Scheme. The indictment of Karl Oreste, 56, of Miramar, Marie Lucie Tondreau, a/k/a “Lucie Tondreau”, 54, of North Miami, Okechukwu Josiah Odunna, a/k/a “O.J. Odunna”, 49, of Lauderdale Lakes, and Kelly Augustin, 57, of North Miami, came after a nine year investigation of a mortgage fraud scheme that occurred from December, 2005 through May, 2008.
The investigation alleged that Oreste used his mortgage lending business located in North Miami Beach, KMC Mortgage Corporation of Florida, to recruit people by advertising on radio shows hosted by Oreste and Tondreau for listeners to pose as “straw borrowers” to purchase “residential properties in South Florida that were for sale.” KMC employee Augustin “also recruited straw borrowers.” The fraudulent loan applications were then submitted to Odunna, an attorney at the time, who submitted the applications to lenders, which then wired the lenders’ mortgage funds to Odunna’s account.
Odunna handled the mortgage closings and then distributed the mortgage funds to various individuals, including his co-defendants and straw borrowers, according to the indictment.
The US Attorney’s News Release further states:
“The indictment alleges that over the course of the conspiracy, the defendants fraudulently obtained loans on approximately 20 properties, for which the lenders have suffered losses in the amount of approximately $8,000,000.00. If convicted, each defendant faces a maximum term of 30 years in prison.
“Mr. Ferrer commended the investigative efforts of the FBI and Florida’s Office of Financial Regulation. The case is being prosecuted by Assistance U.S. Attorney Lois Foster-Steers.
“An indictment is only an accusation, and a defendant is presumed innocent until proven guilty.”
Stehpanie, who chooses the mayor if Lucy gets taken away?
rick scott. just like in other cities.
sorry…more or could be special elect/ etc … maybe Stephanie should decide!
Stephanie is no expert, but thanks for giving me the power LOL! If Lucie is removed from office by the governor (whose office has not yet confirmed that this is a possibility), I imagine there would be a special election. In North Miami Beach when John Patrick Julien resigned to run for a state office, the council chose his replacement to finish his term. But he was not the mayor, so I don’t know what the procedure would be if that were the case. I am also not sure what North Miami’s charter specifies, but I will check on it when I get a chance.
A reader just sent me this link about Odunna: http://www.ripoffreport.com/r/oj-odunna/tamarac-florida-/oj-odunna-darryl-mitchell-law-office-of-darryl-mitchell-are-con-artists-they-scam-peopl-886866
Interesting.
Well done Stephanie!
Thank you, but I didn’t do anything other than report the news. 🙂
You gather the information …. you report the facts peppered with your editorial comment
Lucie! You got some splainin’ to do!
The City of North Miami NEEDS an independent forensic financial audit of every department for the last 5 years!
Coco Douche was a piece of work from the very beginning.
Me? Surprised?
NO!
The replacement of the mayor will depend on how long she has served. If she served less than half her term, the city needs to call a special election. If she served more than half, the council can appoint a replacement.
From Municode.Com:
Sec. 15. Vacancies on the council.
Vacancies on the council shall be filled for the remainder of the unexpired term of the councilmember whose seat becomes vacant in the following manner:
(1)
If the vacancy occurs because of resignation by a councilmember who is seeking other elective office, the election for which office includes the electors of the City of North Miami, such councilmember must file a written resignation with the city clerk at least ten (10) days prior to the earliest qualifying date for such other elective office (the resignation to become effective upon a successor’s being sworn into office) and a successor shall be elected in the same election with qualifying concurrent with the qualifying dates of the office sought by the resigning councilmember.
(2)
If the office of a councilmember becomes vacant on or before the councilmember has served one half of his or her term plus one day, a regular or special election shall be held within sixty (60) days to fill the vacancy for the balance of the term. If the office of a councilmember becomes vacant more than one half of his or her term plus one day after the councilmember takes office, then the remaining members of the council shall choose a successor and such appointee shall fill the vacancy for the balance of the term.
(3)
In accordance with subsection (1) or (2), if a vacancy is to be filled at other than a regular city election, and the city clerk certifies that the city candidates cannot be included on the ballot, then the vacancy shall be filled as provided in subsection (2) as though there were no other election being held.
(4)
Nominations and the conduct of the election shall be as otherwise provided in this charter and by law, and notice of election shall be posted in the city hall and published in a newspaper of general circulation in the City of North Miami once a week for four (4) consecutive weeks preceding the holding of the election.
Stephanie, there’s a question that’s been bugging me since I read the news. (Here in your blog, have to say it.)
When they say, “the FBI was at her house,” What is the address of that house?
Where did the FBI go looking for her?
Ricardo, the most recent address available for Lucie Tondreau is from her last Campaign Treasurers Report, which is listed as 550 NE 125 Street. I have not inquired as to whether or not this is her current address, although I’m sure a public records request could be made. The news reports did say the FBI went to her house to serve her but she was, in fact, out of town in Las Vegas over the weekend. She did turn herself in today and appeared in court and posted a $50,000 bond. I am trying to get more details and hopefully post an update this evening or tomorrow morning. I’m sure there will be reports on the local news stations tonight.
That’s a detail that I would love to find out.
Having an (alleged) fraudster for mayor is bad enough to us citizens of North Miami.
But it will be like adding insult to injury if it turns out that the Feds went to Miami Gardens looking for her .
I will be waiting for your updates. Thanks!