Connecticut Man Admits Role In Mortgage Fraud Scam

Allison Tussey —  July 30, 2010 — Leave a comment

John Jackson, 42, Middletown, Connecticut, pleaded guilty before United States District Judge Christopher F. Droney in Hartford to a one count of conspiring to commit wire fraud stemming from a mortgage fraud scheme.

According to court documents and statements made in court, in 2006, Jackson conspired with a New Haven-based real estate attorney and an East Hartford-based mortgage broker to defraud Mortgage Lender Network USA, Inc., a Florida corporation with offices in Middletown, through the purchase of Meriden residential property. Working with the attorney and mortgage broker, Jackson signed a loan application provided by the mortgage broker for a loan in the amount of $280,000. Both Jackson and the mortgage broker knew that application contained several material misrepresentations, including Jackson‘s true financial condition. The application also falsely represented the purchase price of the property, which was substantially less than reflected on the loan application; that the property was to be Jackson‘s primary residence, when it was not; Jackson‘s total liabilities, which were much higher than represented on the application, and that Jackson would provide approximately $60,000 in cash at the loan closing.

 

On approximately July 21, 2008, as part of the scheduled loan closing, Mortgage Lender wired approximately $283,000 into the attorney’s trust account. At the closing, Jackson signed a HUD settlement statement, which was prepared by the attorney, that overstated the actual purchase price of the property by more than $150,000, and that stated that Jackson had made an earnest payment toward the purchase. In fact, Jackson had not made a payment. Instead, the attorney had made a payout to Jackson.

Judge Droney has scheduled sentencing for October 15, 2010, at which time Jackson faces a maximum term of imprisonment of five years and a fine of up to $250,000.

This case is being investigated by Federal Bureau of Investigation and the Connecticut State Police. The case is being prosecuted by Senior Litigation Counsel Christopher W. Schmeisser.

 

David B. Fein, United States for the District of Connecticut, announced the guilty plea. 

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Allison Tussey

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