Attorney Sentenced for Mortgage Scam Involving $8M in Losses

Allison Tussey —  April 17, 2014 — Leave a comment

Victoria l. Sprouse, Charlotte, North Carolina, was sentenced on April 15, 2014, for her role in a mortgage fraud scheme involving the use of false mortgage applications and HUD-1 Settlement Statements.

According to media reports, Sprouse was sentenced to more than six years.

As previously reported by Mortgage Fraud Blog, Sprouse was found guilty by a jury of bank fraud and money laundering, among other crimes, after an eight day trial. Sprouse, was charged in a Superceding Indictment with perjury, conspiracy to commit money laundering, mail, wire and bank fraud.

According to the Indictment, Sprouse, a licensed North Carolina real estate attorney, and Michael D. Pahutski, a mortgage broker at Southland Mortgage Corporation, participated in a scheme from 2001 through September 2002, in Mecklenburg County, North Carolina, to obtain money and property by means of false and fraudulent pretenses, representations and artifices to defraud financial institutions of money and their right to honest services.

Specifically, Sprouse and Pahutski prepared materially false mortgage applications and supporting documents to submit to lenders for approval. The defendants also prepared and signed materially false HUD-1 settlement statements, appraisals and did accept down-payment checks from persons other than the buyers listed in the HUD-1 settlement statements.

 

 

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Allison Tussey

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