What is Mortgage Fraud? The Different Types of Charges
If someone is charged with Mortgage Fraud, they will fall into one of three categories of fraud. Whether they played the main role and acted solely on their behalf, or played a partial role as part of a larger scheme, the criminal charges and sentencing vary widely if there is a conviction. It is essential that, no matter what role was played, you seek experienced and proficient representation. Criminal defense attorneys at the O’Mara Law Group have extensive experience in Criminal Trial Law, including Mark O’Mara, a legal analyst for CNN and founder of Justice Outreach.
So What Are the Three Different Kinds of Mortgage Fraud?
Fraud for Profit- Fraud for Profit is also known as “Industry Insider Fraud.” This type of mortgage fraud is rated by Freddie Mac as the most costly. This is typically committed by a group of people playing multiple roles in a large scheme. This type of fraud requires numerous fraudulent transactions. Those involved in this type of fraud can include realtors, mortgage brokers, loan officers, and home sellers (Freddie Mac, 2016). This large-scale fraud requires coordination to pull off, and every role is important. Don’t think for a second that the larger the group in the party, the less severe individual charges will be. In Anchorage in 2009, a real estate investor who played a role in a scheme was one of nine charged; he was sentenced to 70 months in prison and pleaded guilty to 64 counts. In addition, he was ordered to pay $2.5 million in restitution (FBI.gov, 2009). In 2007, 31 people were charged in one scheme (FBI.gov, 2010).
Fraud for Criminal Enterprise - This type of fraud is typically committed with involvement in criminal organizations. This type of scheme involves the process of laundering funds in means of buying properties with “dirty” money, money that was obtained through criminal activity of any kind, and turning around and selling them. Usually, there is more than one key player; however, it does not require many; under most state laws, a conspiracy can exist with as few as 2 people. While there are variations to the schemes played out in this type of Mortgage Fraud, the most common is by way of property flipping for the purpose of laundering illegal funds (Freddie Mac, 2016).
Fraud for Housing/Property- The most common mortgage fraud charge is Fraud for Housing or Property. Unfortunately, this crime is rarely considered serious by those who commit it. This is traditionally a single-act crime, usually benefiting one person or family. The most common scheme in this fraudulent act involves a borrower falsifying information and/or documents. Falsifying information on mortgage loan applications, such as employment, assets, or income, is a federal offense. If there have not been any charges filed, and you feel the need for obtaining legal representation in Orlando, mortgage fraud lawyer Mark O’Mara of the O’Mara Law Group can advise you on what the next step should be. Know this: while it is the most common mortgage fraud, and many cases go undetected, it is not taken lightly in a court of law. In 2007, a woman was sentenced to 37 months in prison by a Federal court for committing mortgage fraud (Freddie Mac, 2016). This type of mortgage fraud is not always intentional, and the range of consequences varies state by state. If you feel you may have committed an accidental crime, it is best to consult a professional proactively.
Mortgage Fraud is a serious crime, and the Federal government conducts studies to reduce the rate of fraudulent activity in the mortgage industry. The lasting effects of mortgage fraud charges can be devastating to families and reputations. Seeking experienced, expert representation and guidance is essential to the outcome of this situation. O’Mara Law Group combines substantial criminal trial experience with the relief from worry for its clients. Do not wait until it is too late, schedule a consultation immediately so you can rest…confidently.
