David Saks: TWO LOUSY MORTGAGE LOAN OFFICERS GET STIFF PRISON SENTENCES FOR FRAUD

David Saks - Real Estate Broker - The Real Estate Mart of Tennessee, Inc. - 4040 North Watkins-Suite #4 - Memphis, Tennessee 38127 - Phone (901) 357-4663

TWO LOUSY MORTGAGE LOAN OFFICERS GET STIFF PRISON SENTENCES FOR FRAUD

Mortgage Loan Officers Sentenced for $4.8 Million Mortgage Fraud

U.S. Attorney’s Office February 04, 2013
  • District of Minnesota (612) 664-5600
 

MINNEAPOLIS—Earlier today in federal court, two mortgage loan officers were sentenced for recruiting straw buyers to purchase properties at inflated prices and then distributing the excess loan funds among themselves, the straw buyers, and others involved in the scheme.

United States District Court Judge Joan N. Ericksen sentenced Chad Arthur Anderson, age 39, and Troy Allen Huston, age 43, both of Chisago City, to federal prison terms of 60 months and 57 months, respectively, on one count of conspiracy to commit mortgage fraud through the use of interstate wires.

They also were ordered to pay more than $4.8 million in restitution. The two were indicted on April 3, 2012, and pleaded guilty on August 13, 2012.

In their plea agreements, the defendants admitted that from 2006 through 2007, they recruited others, mainly relatives and friends, to act as straw buyers for the purchase of homes in the Twin Cities.

At the time, the men worked as loan officers at Prestige Mortgage, a mortgage brokerage company in White Bear Lake, where they brokered numerous fraudulent mortgage loans by submitting false loan applications to prospective lenders. Anderson admitted to recruiting five straw buyers to purchase 17 homes during the course of the scheme, while Huston admitted to recruiting an unspecified number of buyers to purchase additional homes. The scheme involved a total of 32 homes in Minnesota. The properties involved are located in Otsego, Oak Grove, Elk River, St. Francis, Brooklyn Park, Isanti, St. Paul, Chisago City, Becker, Cambridge, Buffalo, Minneapolis, Zimmerman, and Albertville.

All the mortgage loans involved have gone into default, causing losses to the mortgage lenders that exceed $2.5 million.

At all times relevant to this case, Anderson and Huston were also involved in Lofton Property Management, a property management company in Chisago City. They used Lofton’s name on construction invoices and other statements to obtain loan proceeds for property management services never provided. In addition, they used Lofton’s name on property settlement statements, thereby receiving fraudulent mortgage loan proceeds, which they disbursed among themselves, the straw buyers, and others involved in the scam.

At the same time, Huston was involved in YES Financial, a property finance company in Chisago City. Through that company, he received additional illicitly acquired loan proceeds. Moreover, he prepared false loan applications on behalf of the straw buyers, often overstating their income, misrepresenting their employment, and failing to disclose their other mortgage obligations or the true source of their down payments.

This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.

source: FBI



David Saks



Time&Temp Memphis

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Comment balloon 2 commentsDavid Saks • February 05 2013 10:23AM

Comments

Aside from wondering what makes these people think they won't get caught, whatever happened to wanting to do the right thing?  I am surprised to still be reading about this kind of thing happening....

Posted by Pat Haddad, ABR, CRS, ePRO, GRI, Carmel, Fishers, Westfield IN Real Estate Expert (Keller Williams Indianapolis Metro NE) about 7 years ago

Then this should really surprise you, Pat:

Click the little red button.

Real Estate Crimes

Posted by David Saks ((retired)) about 7 years ago

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