More Criminal Charges For Mortgage Schemes

: Chris Lee Law Firm

  Filed under: Financial News

mortgage fraudMortgage and foreclosure fraud schemes have been lurking around for a while now. As the Federal Trade Commission works to investigate thousands of consumer complaints each month, other agencies have stepped into help police such scams. A recent investigation in Gainesville, VA lead to the conviction of five people, who all face possible jail time for their crimes.

Criminal Court

Five defendants pleaded guilty to mortgage fraud last week in a U.S. District Court. The scheme involved the cooperation of a mortgage broker, unqualified buyer, an executive from a title company and others who worked together to approve fraudulent loan documents. The elaborate scam consisted of submitting fake mortgage applications that contained falsified information and the approval of the loan, by which the loan was pocketed among the key players.

Accused of defrauding financial institutions out of more than $700,000 and profiting close to $1.5 billion in a mortgage fraud scheme, the five defendants were found guilty. All five could face up to five years in prison and ordered to pay hundreds of thousands in restitution. They are currently awaiting sentencing, which is scheduled for August of this year.

 

 

 

 


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