David Saks: LOAN ORIGINATOR NETS PRISON SENTENCE FOR MORTGAGE FRAUD

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LOAN ORIGINATOR NETS PRISON SENTENCE FOR MORTGAGE FRAUD

Lender Representative Sentenced for Mortgage Fraud Scheme

U.S. Attorney’s Office March 27, 2012
  • Eastern District of Virginia (757) 441-6331
 
 

NEWPORT NEWS, VA—Victoria L. Allen, 57, of Chesapeake, Virginia, was sentenced yesterday to 48 months in prison for conspiring to commit mail and wire fraud and was ordered to pay $1,940,000 in restitution. Allen, along with several conspirators, orchestrated a wide-ranging mortgage fraud scheme in the Tidewater area that resulted in losses of nearly $2,000,000 and involved over 30 property transactions.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after sentencing by United States District Judge Robert G. Doumar. Allen pled guilty on December 15, 2010.

According to a statement of facts filed with her plea agreement, Allen was a loan originator and branch manager of First Horizon Home Loan Corporation, a mortgage lender located in Chesapeake. Ephrain Harris owned and operated Can Do Accounting in the city of Newport News and was engaged in preparing tax returns and other accounting services. Another conspirator, Shavonda York, worked as a mortgage broker and owned and operated USA Processing and Destiny Consulting. Tamiko Alston operated a local title company and Darrell Booker owned a local business.

The conspirators prepared and submitted numerous false documents to fraudulently obtain financing from First Horizon Home Loan Corp.—Allen’s former employer—to fund closings on various residential properties. The conspirators also used seller proceeds to fund the property transactions and purchase cashier’s checks without the knowledge or consent of the mortgage lender. These cashier’s checks were then used to provide the required buyer closing costs and down payment. In this manner, the conspirators concealed the true source of the required borrower funds and acted contrary to the instructions of the mortgage lender, which would not have approved this use of funds. Alston would create two HUD-1 Settlement Statements to conceal the disbursements.

A review of loan files and other documents showed that Allen knowingly submitted to the lender false paystubs and/or W-2 forms for at least 13 conventional loan transactions. In reliance on this false information, First Horizon Home Loan Corp. made loans on various subject properties. The notes on certain loans were subsequently purchased by other companies that sustained losses when the loans on a number of properties went into default and were sold at foreclosure. A review of FHA loan files and other documents indicated the defendant knowingly submitted to the lender false pay stubs and/or W-2 forms for at least 19 FHA-insured loan transactions. The FHA maintains a database named “Neighborhood Watch” that is used to track the performance of FHA-approved brokers and lenders. According to Neighborhood Watch, for the time period July 1, 2008 through June 30, 2010, the branch of First Horizon Home Loans that Allen supervised had a seriously delinquent ratio of 30.30 percent, the highest rate in the state of Virginia for that time period. Ephrain Harris pled guilty on October 21, 2010 and was sentenced to 41 months; Shavonda York pled guilty May 7, 2009 and was sentenced to 25 months; Tamiko Alston pled guilty July 13, 2010 and was sentenced to 25 months; and Darrell Booker pled guilty on October 6, 2010 and was sentenced to 21 months.

The case was investigated by the FBI and Housing and Urban Development’s Office of the Inspector General. Assistant United States Attorney Brian J. Samuels prosecuted this case on behalf of the United States.

A copy of this press release may be found on the website of the United States Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.

source: FBI



David Saks



Time&Temp Memphis

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Comment balloon 1 commentDavid Saks • March 27 2012 01:47PM

Comments

If you don't play by rules you are bound to get caught.  Imagine falsifying pay stubs and thinking is okay.

Posted by Jeff Jensen (The Federal Savings Bank/Lending in 50 states) about 8 years ago

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