Beltsville Leader In Mortgage Fraud Scheme Pleads Guilty

admin —  February 10, 2009 — Leave a comment

Timothy Reed, 43, Beltsville, Maryland, pleaded guilty to mail fraud arising from the fraudulent purchase of 25 properties in Maryland, the District of Columbia and Virginia using false mortgage and settlement documents.

The Information mentions 5 of the 25 properties involved in the scheme:

1429 W. Lombard Street, Baltimore, Maryland, 21223

34 Q Street, Washington, District of Columbia, 20001

32 Q Street, Washington, District of Columbia, 20001

119 Bates Street Northwest, Washington, District of Columbia, 20001

152 North Potomac Street, Balitmore, Maryland, 21224

According to the plea agreement, Reed and others paid over 15 straw purchasers $10,000 per property to purchase houses for Reed and others. Reed created false mortgage and settlement documents, many of which misrepresented the straw purchasers’ income and assets. Reed and others also created false invoices to claim that their company, Brotherly Investment Group, performed “renovations” on some of the properties. Using these false invoices, Reed and others were “repaid” at closing for the purported renovations. Reed was an organizer and leader in this scheme.

From 2006 to 2008, Reed and others received approximately $3,830,418 in fraudulent funds as part of this scheme. Many of the purchased properties have been foreclosed upon.

Reed faces a maximum sentence of 30 years in prison. U.S. District Judge J. Frederick Motz has not scheduled sentencing.

Acting U.S. Attorney Marietta Parker made the announcement. U. S. Attorney Rod J. Rosenstein thanked the Federal Bureau of Investigation, the U.S. Postal Inspection Service, the Montgomery County State’s Attorney’s Office – Economic Crimes Unit and the U.S. Secret Service for their investigative work and assistance. Mr. Rosenstein commended Assistant United States Attorney Kwame J. Manley, who is prosecuting the case.

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