1098 NE 95 St (5)Mortgage-firm clerk charged with theft
41'ERAk_p b'7
A $14,000 -a -year escrow clerk
for a Dade mortgage company has
been charged with grand theft in
the alleged embezzlement of $56.-
000 in federal funds, Metro -Dade
police said Friday.
Othniel Eugene' Blake, 23, of
1098 NE 95th St., Miami Shores,
was arrested in a continuing
investigation by investigators
from the Economic Crime Unit,
police said.
Police allege that Blake used his
job as a clerk with Southeast
Mortgage Co. for personal profit.
Black was responsible for billing
the U.S. Department of Housing
and Urban Development for feder-
al subsidy money for low- income
mortgage holders, investigators
Mortgage clerk stole $1.5 million
by bilking U.S. agency, police say
JOHN FERNANDEZ
Miami News Reporter
A Miami mortgage clerk has been arrested in con -
nection with an "elaborate scheme" in which he al-
legedly bilked the U.S. Department of Housing and
Urban Development (HUD) out of $1.5 million over
two years — the second alleged public housing ripoff
uncovered here in as many weeks, according to Met-
ro police.
Othniel Eugene Blake, .23, of Miami Shores, was
arrested by detectives with the police Economic
Crime Unit and charged with first- degree grand
theft, said detective Gordon Angus.
Blake, an escrow clerk with Southeast Mortgage
Co., a subsidiary of Miami -based Southeast Bank, al-
legedly "over - billed" HUD for federal subsidies to
low- income mortgages, Angus said. HUD pays a por-
tion of the mortgages for low- income, single - family
households.
Blake allegedly took the amount overcharged to
HUD and funneled the money to local bank accounts
in his name, Angus said. Blake credited HUD with the
mortgage payments but the money never was put in-
to HUD accounts, Angus said.
Police have thus far recovered $56,000 of $1.5 mil -.
lion Blake allegedly stole, Angus said. Police have
confiscated Blake's house at 1098 N.E. 95th St., two
cars and other property allegedly paid for with stolen
funds.
Blake, who was arrested on May 28, had earned
$14,000 a year at Southeast, Angus said.
An auditor for Southeast Bank tipped off police
three weeks ago after he noticed Blake dispatch a
courier on two trips in one day to a Southeast Bank
branch, Angus said. It is unusual for a courier for
Southeast Mortgage to make more than one such trip,
he said.
"He probably wouldn't have been caught if it
weren't for the bank auditor," Angus said.
N P'914b
said.•
Police say that Blake used a
complicated scheme to inflate
Southeast Mortgage's bill to HUD,
then converted the extra money to
money orders that were deposited
in his personal bank account.
Blake, who was arrested May 28
and is free on bond, was not home
Friday night at his listed address.
No one seemed be 'inside the
residence, a palatial, two -story
home that is surrounded by a high
stone wall.
A two -story addition to the
home has recently been under
way. According to real estate
records, the four - bedroom, four -
bath home was sold to a Eugene E.
Blake for $375,000 in April 1985.
Neighbors said Friday evening
that they knew little of the home's
occupants.
The inquiry has shown that
approximately $1.5 million was
missing, and investigators have
located about $600,000 in assets,
police said. Authorities made pub-
lic no other details Friday.
The Toss was discovered through
an internal investigation at South-
east Mortgage, 2500 NW 79th'
Ave., according to police.
The investigation began after a
Southeast Bank auditor noticed
that a courier had made two trips
to the bank one day instead of the
custumary one, police said. The
auditor's inquiry was conducted in
cooperation with Southeast Mort-
gage Co.
By AL MESSERSCHMIDT
Herald Staff Writer
A $14,000 -a -year mortgage company clerk
bought a Mercedes -Benz and an elaborate
Miami Shores home with money stolen from
the U.S. Department of Housing and Urban
Development, according to charges filed in
Circuit Court.
Othniel Eugene Blake, 23, had been charged
last week with embezzling $56,000 in federal
funds while working for Southeast Mortgage
Co.
At a bond hearing Thursday, prosecutor
Fred Kerstein said investigators have now
pointed $1.5 million in missing funds and
assets.
Kerstein charged Blake with 29 counts of
grand , theft. If convicted, Blake could be
sentenced to 435 years in prison.
Prosecutors say Othniel Blake bought this Miami Shores home with embezzled money.
Clerk allegedly skimmed $1.5 million
Kerstein asked Circuit Judge Thomas Car-
ney to increase Blake's bond from $3,000 to
$250,000.
Defense attorney Raphael Steinhardt said
Blake "has nothing left" after his arrest. "A
huge bond wouldn't be in the interests of
justice."
Blake, of 1098 NE 95th St., surrendered the
$50,000 Mercedes, moved from the Miami
Shores home and has helped state investigators
who are searching for the missing money,
Steinhardt said. "We're cooperating 1,000
percent," he said.
Blake's bank accounts have been frozen,
Steinhardt said. "If this man wanted to flee, he
would have fled when the assets were liquid."
Blake pleaded not guilty to the charges and
waived a. jury trial. He is scheduled for trial
Aug. 18.
The embezzlement scheme began in mid -
1984, according to the charges. Blake, a clerk
at the mortgage company, was responsible for
billing HUD for reimbursement of subsidy
money for low- income mortgage holders.
Blake allegedly inflated the amounts due
from HUD, skimmed the money and deposited
it in a stock account and at two Miami banks.
In July 1985, Blake bought the four -bed-
room, four -bath Miami Shores home for
$375,000. The home has a $170,000 mortgage.
Steinhardt said the home is now worth
more than $500,000 because Blake ordered
improvements, including a Jacuzzi and a
two -story addition.
Blake deeded the house to the Circuit Court
clerk's office Thursday as part of the $35,000
bond.
AL DIAZ / Miami Herald Staff
"�Hetinr SU
ORLANDO — With 1,700 teachers, guid-
ance counselors, coaches and eager college
graduates here to scout for jobs in schools,
Dade County is using the hard sell.
Working 12 -hour shifts at cluttered confer-
ence tables, 18 Dade recruiters interviewed
applicants Thursday at a teachers' job fair.
Downstairs, 18 slide projectors beamed a
glowing panorama of Calle Ocho street
festivals, Coconut Grove art shows, the Miami
Grand Prix, Biscayne Bay sailing, balloon rides
Suarez urges
disclosure
law for city
By JUSTIN GILLIS
Herald Staff Writer
Miami Mayor Xavier Suarez said
Thursday he would sponsor a
tough new law requiring city
commissioners to disclose their net
worth, their debts and other
important financial information.
Three of the five city commis-
sioners said Thursday they were
disposed to vote favorably on such
a proposal, and another said he
would consider it. That means if
Suarez can satisfy some minor
concerns, the plan is almost cer-
tain to pass.
The mayor's plan would force
city commissioners to disclose the
same extensive financial informa-
tion that state law now requires of
state and county officials, county
commissioners, mayors, tax collec-
tors and certain other officials.
Suarez acknowledged Thursday
that he decided to propose
strengthening disclosure require -'
ments after reading a report in
The Miami Herald about Mary
Foote, a North Miami Beach
councilwoman who was caught
lying on disclosure forms she had
\filed with the city.
Foote had filed fake reports
1 1] IIL_
1 47R to 4: Z a
m tctrrraf'TAied
"If you're lookin
live, good quality o
system, we have i
assistant superinte
prospective teache
"I rode in one
on one of those jet
I go to the Cub
enjoy the restaur
too."
The three -day
for an exciting place to
life, a very strong school
Terence Garner, Dade's
ent for personnel, told 60
after the slide show.
those balloons. I'm going
kis two weeks from today.
area, Little Havana, and
ts. I like the Haitian food,
177 le'r1Tnvr
ers to the Wyndham Hotel ballroom to court
applicants. Most of the applicants are from
hard - pressed Farm Belt towns. One came from
Alaska.
Dade's recruiting team is the largest, and in
the next few weeks, Garner hopes to hire 400
to 500 of the candidates.
Many of the districts interview applicants
for half an hour and make decisions in the
onvention, called the Great
Please turn to TEACHERS / 2C
Pereira
on tra
By CELIA W. DUGGER
Herald Staff Writer
Every year for nine years, Dade
have spent more and more
transportation. They got a batter_
an underused rail line.
Next year, the ever - growing tra
will grow no more, said County
Pereira.
In 1978, local taxpayers spec
public transportation. By this yeas
soared to $90.6 million.
But in fiscal 1987, if the Metro
along with Pereira's recommend
Dade Transportation Administratic
its 500 buses, 21 -mile rail system
Metromover with $1 million less th
"We can't be all things to all p
Friends, far
mourn 2 r
slain after c
Clerk allegedly skimmed $1.5 million
- 2C The Miami Herald / Friday. June 20, 1986 F -2
Prosecutors say Othniel Blake bought this Miami Shores home with embezzled money.
By AL MESSERSCHMIDT
•
Herald Staff Writer
A $14,000 -a -year mortgage company clerk
bought a Mercedes•Benz and an elaborate
Miami Shores home with money stolen from
the U.S. Department of Housing and Urban
Development, according to charges filed in
Circuit Court.
Othniel Eugene Blake, 23, had been charged
last week with embezzling $56,000 in federal
funds while working for Southeast Mortgage
Co.
At a bond hearing Thursday, prosecutor
Fred Kerstein said investigators have now
pinpointed $1.5 million in missing funds and
assets.
Kerstein charged Blake with 29 counts of
grand theft. If convicted, Blake could be
sentenced to 435 years in prison.
Kerstein asked Circuit Judge Thomas Car-
ney to increase Blake's bond from $3,000 to
$250,000.
Defense attorney Raphael Steinhardt said
Blake "has nothing left" after his arrest. "A
huge bond wouldn't be in the interests of
justice."
Blake, of 1098 NE 95th St., surrendered the
$50,000 Mercedes, moved from the Miami
Shores home and has helped state investigators
who are searching for the missing money,
Steinhardt said. "We're cooperating 1,000
percent," he said.
Blake's bank accounts have been frozen,
Steinhardt said. "If this man wanted to flee, he
would have fled when the assets were liquid."
Blake pleaded not guilty to the charges and
waived a jury trial. He is scheduled for trial
Aug. 18.
AL DIAZ / Mlaml Herald Staff
The embezzlement scheme began in mid -
1984, according to the charges. Blake, a clerk
at the mortgage company, was responsible for
billing HUD for reimbursement of subsidy
money for low - income mortgage holders.
Blake allegedly inflated the amounts due
from HUD, skimmed the money and deposited
it in a stock account and at two Miami • banks.
In July 1985, Blake bought the four -bed-
room, four -bath Miami Shores home for
$375,000. The home has a $170,000 mortgage.
Steinhardt said the home is now worth
more than $500,000 because Blake ordered
improvements, including a Jacuzzi and a
two -story addition.
Blake deeded the house to the Circuit Court
clerk's office Thursday as part of the $35,000
bond.
-2C The Miami Herald / Friday. June 20, 19Sti F-2
Prosecutors say Othniel Blake bought this Miami Shores home with embezzled money.
AL DIAZ / Miami Herald Staff
Clerk allegedly skimmed $1.5 million
By AL MESSERSCHMIDT
•
Herald Staff writer
A $14,000 -a -year mortgage company clerk
bought a Mercedes -Benz and an elaborate
Miami Shores home with money stolen from
the U.S. Department of Housing and Urban
Development, according to charges filed in
Circuit Court.
Othniel Eugene Blake, 23, had been charged
last week with embezzling $56,000 in federal
funds while working for Southeast Mortgage
Co.
At a bond hearing Thursday, prosecutor
Fred Kerstein said investigators have now
pinpointed $1.5 million in missing funds and
assets.
Kerstein charged Blake with 29 counts of
grand theft. If convicted, Blake could be
sentenced to 435 years in prison.
Kerstein asked Circuit Judge Thomas Car-
ney to increase Blake's bond from $3,000 to
$250,000.
Defense attorney Raphael Steinhardt said
Blake "has nothing left" after his arrest. "A
huge bond wouldn't be in the interests of
justice."
Blake, of 1098 NE 95th St., surrendered the
$50,000 Mercedes, moved from the Miami
Shores home and has helped state investigators
who are searching for the missing money,
Steinhardt said. "We're cooperating 1,000
percent," he said.
Blake's bank accounts have been frozen,
Steinhardt said. "If this man wanted to flee, he
would have fled when the assets were liquid."
Blake pleaded not guilty to the charges and
waived a jury trial. He is scheduled for trial
Aug. 18.
The embezzlement scheme began in - mid -
1984, according to the charges. Blake, a clerk
at the mortgage company, was responsible for
billing HUD for reimbursement of subsidy
money for low- income mortgage holders.
Blake allegedly inflated the amounts due
from HUD, skimmed the money and deposited
it in a stock account and at two Miami banks.
In July 1985, Blake bought the four -bed-
room, four -bath Miami Shores home for
$375,000. The home has a $170,000 mortgage.
Steinhardt said the home is now worth
more than $500,000 because Blake ordered
improvements, including a Jacuzzi and a
two -story addition.
Blake deeded the house to the Circuit Court
clerk's office Thursday as part of the $35,000
bond.
i STUART A. COHEN, ATTORNEY
SCALE
StRVEY DATE
JOB NO.
N. E. 95 77
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i PSCE:II'TION
Lot 1, "KIPBY' S AD[)TION TO MIAMI S1V RES" according to tne 1,1 :1 t
tilerPOf recorded in Plat Rook 41 [',.t•.n.• 44 of the Pub i is rtecc,r
of Dade Codnty, Florida.
PROPERTY ADDRESS
1098 N. E. 95 Street
Miami Shores, FL'
SURVEYOR'S CERTIFICATE
I, ROBERT T. BOGLE, hereby certify that I hew made a recent survey of the abase described property as
indicated, and that thou are no abowyround encroachments exam er shown. I further certify that the survey
repraeented hereon is true and cortaet and this it meats the requirements of the Florida Society of Protemisnel Lend
Surveyors and tits Florida Land Tide Aseodation.
1" = 30'
April 3, 1985
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