Man Admits False Statements to Obtain Loan

Allison Tussey —  February 23, 2011 — Leave a comment

Michael Douglas Conley, 28, Oakdale, Calfornia, who lied on documents allowing him to buy a home in Dry Fork, Virginia, pled guilty to making false statements or declarations to the U.S. Department of Housing and Urban Development (HUD).

Conley waived his right to be indicted and pled guilty to an Information charging him with one count of making false and fraudulent statements to HUD in support of a Federal Housing Administration (FHA) mortgage. The maximum penalty faced by the defendant is a term on imprisonment of up to five years and/or a fine of up to $250,000. He may also be ordered to pay restitution to the United States.

Conley admitted in court that when he purchased a $76,900 home in Dry Fork, he lied on documents submitted to FHA about his employment status. On the documents used to secure the FHA loan, Conley stated that he and his wife worked for a company in Mooresville, North Carolina. He provided false documents to support the claims when, in fact, neither was employed at the time.

As a result of the false statements made to FHA and HUD, Conley was issued a mortgage in the amount of $75,711 in October 2005. Subsequently, he made one mortgage payment before the loan fell into default status and was ultimately foreclosed on, causing a loss to HUD of $38,000.

“The integrity of our banking system depends upon the truthfulness of applicants for loans and mortgages,” United States Attorney Timothy J. Heaphy said. “When people like Mr. Conley lie to obtain mortgages, they will be held responsible for their actions. It is critical that during these times of economic uncertainty we hold all those who cheat our banking system responsible for their actions.”

The investigation of the case was conducted by the U.S. Department of Housing and Urban Development . Assistant United States Attorney Charlene Day is prosecuting the case for the United States.

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Allison Tussey

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