Seven Sentenced to Federal Prison in
Multi-Million-Dollar Mortgage Fraud Scheme
|U.S. Attorney’s Office July 29, 2014|
HOUSTON—The final two defendants charged for their roles in a multi-million dollar mortgage fraud scheme operating in the Houston area have been ordered to prison, announced United States Attorney Kenneth Magidson.
Din Chaney, 36, and
Lisa Lipton, 50,
admitted to participating in a conspiracy to commit bank, mail and wire fraud as did
Catherine Sanoubane, 35,
Jose Batista, 36,
Dennis Hannah, 43,
Nathaniel Gordon III, 32, and
Shawn Lewis Washington, 38.
All were convicted of the conspiracy.
Chaney, Sanoubane, Hannah and Gordon also admitted to conspiracy to commit money laundering
Today, U.S. District Judge Lee H. Rosenthal sentenced Chaney to a total of 36 months, while Lipton received a 52-month-term of imprisonment. Lipton and Chaney were also ordered to pay $3,499,129.06 and $4,551,917.65 in restitution, respectively.
Sanoubane, Hannah, Gordon, Washington and Batista were all sentenced earlier this year to respective terms of 115, 46, 24, 97 and six months in federal prison. All were also ordered to pay restitution in varying amounts ranging from more than $1.6 million to more than $6.3 million.
The scheme involved the recruitment of straw borrowers to purchase residential properties at an inflated value.
Financing was obtained from various lenders who were provided false and fraudulent information meant to induce them to fund the loans.
The defendants arranged to be compensated with a portion of the loan proceeds.
Ultimately, the loans fell into default which resulted in a substantial loss to the lenders.
Sanoubane, Lipton, Chaney and Gordon
were all licensed loan officers in the State
of Texas engaged in mortgage lending
during the commission of the fraud.
In addition, Lipton was also a licensed
mortgage broker doing business as TWMC
The criminal investigation was led by the FBI, U.S. Postal Inspection Service and Internal Revenue Service—Criminal Investigation. Assistant U.S. Attorney Melissa Annis is prosecuting.