$19M Mortgage Fraudster Sentenced to Over 3 Years

admin —  November 2, 2009 — Leave a comment

Terrence White, 35, Oxon Hill, Maryland, has been sentenced to 42 months in prison, followed by three years of supervised release for mail fraud arising from the fraudulent purchase of 25 properties in Maryland, the District of Columbia and Virginia using false mortgage and settlement documents. U.S. District Judge J. Frederick Motz also entered a restitution order against White in the amount of $4,196,967.

According to his plea agreement, White, Timothy Reed, Osman Al-Bari and others paid over 15 straw purchasers $10,000 per property to purchase houses for White and others. White created false mortgage and settlement documents, many of which misrepresented the straw purchasers’ income and assets. White, Reed and Al-Bari also created false invoices to claim that their company, Brotherly Investment Group, performed “renovations” on some of the properties. Using these false invoices, White and his co-conspirators were “repaid” at closing for the purported renovations.

This scheme involved fraudulent loans worth over $19,021,366. Over 10 individuals and banks were harmed. The loss amount foreseeable to White is between $2.5 and $7 million. Many of the purchased properties have been foreclosed upon.

Kara McIntosh, 47, and Sabrina Weinberg, 44, both of Bethesda, Maryland, were sentenced to three years and two years in prison, respectively for mail fraud. Osman Sharrieff Al-Bari, 35, Washington, D.C., was sentenced to 78 months in prison. Jamilah Al-Bari, 37, District Heights, Maryland and Timothy Reed, 44, Beltsville have pleaded guilty to mail fraud in connection with their participation in this scheme and are scheduled to be sentenced in the next two months.

United States Attorney for the District of Maryland Rod J. Rosenstein announced the sentencing.

This prosecution has been brought as part of the Maryland Mortgage Fraud Task Force, a group of more than 15 federal, state and local law enforcement agencies in Maryland. The Task Force was formed to promote the early detection, identification, prevention, and prosecution of various kinds of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of Maryland’s law enforcement agencies to protect consumers from fraud and help to ensure the integrity of the mortgage market and other credit markets.

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