Sunday, September 8, 2013

Oregon Mortgage Broker and Straw Buyers Sentenced in $7M Mortgage Fraud - Drug laundering Scheme

The Rumor Mill News Reading Room 

Oregon Mortgage Broker and Straw Buyers Sentenced in $7M Mortgage Fraud - Drug laundering Scheme
Posted By: RumorMail [Send E-Mail]
Date: Sunday, 8-Sep-2013 09:46:52

This week, U.S. District Court Judge Ann Aiken sentenced Peter Wilkinson and six others for their roles in a $7 million mortgage fraud scheme. Wilkinson, 43, of Eugene, Oregon, received the largest sentence: 57 months in prison and five years of supervised release. The court has not yet ruled on restitution.
According to court records, Wilkinson was a former state-licensed mortgage broker and owned and operated Deschutes Mortgage Group in Bend, Oregon, during the housing boom. As part of his scheme, Wilkinson knowingly submitted almost 60 bad loans for more than 30 properties, causing lenders to lose between $2.5 million and $7 million. Wilkinson pocketed more than $500,000 from these loans. He also involved six of his client-borrowers in his scheme: Cary Martinez, Barry Seaton, Kurtis Israel, Sean Bart, Jason Hoby, David McNulty, and Amy Ridley.
To convince lenders to approve the loans, Wilkinson and his client-borrowers falsely inflated their monthly incomes on home loan applications, omitted their liabilities from home loan applications, falsely claimed on home loan applications that the financing was for a primary residence rather than an investment property, or used straw borrowers to obtain financing for real estate. Additionally, Wilkinson and his client-borrowers deposited large amounts of money, often $100,000 or more, into their checking accounts to falsely prove cash reserves needed for the loan approval process.
U.S. Attorney Amanda Marshall noted, “The defendants’ fraud was extensive, involving at least eight individuals, more than 30 properties, more than 50 loans, money laundering, numerous victims, countless financial transactions, straw borrowers, millions of dollars in losses, and potentially millions of dollars in restitution. These defendants, members of the finance and real estate industries, and home buyers need to understand that fraud will not be tolerated. Such selfish choices affect more than a few individuals. They affect entire industries and communities. The defendants’ conduct, when taken with similar fraudsters, contributed to the housing bubble that left our great state and nation reeling when it burst.”
“The main defendant put hundreds of thousands of dollars into his own pockets while defrauding more than 20 banks and businesses out of millions of dollars,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon. “This case represents a systematic and deliberate attempt to undermine the ground on which the housing market in the Bend region is built. The fraud has a direct impact on the health of our economy and, therefore, on the financial well-being of all people in central Oregon.”
more:
http://www.loansafe.org/mortgage-brokers-and-6-of-his-borrowers-sentenced

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