Couple Found Guilty of Mortgage Fraud

Allison Tussey —  December 17, 2010 — 4 Comments

Meggan J. Alexander, 29, Mason City, Iowa, has been convicted of one count of making a false statement for the purpose of obtaining a HUD-insured loan, and three counts of making a false statement to a bank in connection with a loan; she was acquitted of one count of making a false statement to a bank in connection with a loan. David L. Alexander, 33, Mason City, Iowa, has been convicted of one count of making a false statement to a bank in connection with a loan and acquitted of one count of the same charge. The verdict was returned following about five hours of jury deliberations.

The evidence at trial showed that Meggan J. Alexander falsely stated on an application for a $130,000 home loan that she was employed and had no outstanding judgments against her, when in fact she was not employed and had an outstanding judgment against her from a conviction for theft in Black Hawk County, Iowa. She defaulted on the loan and sent two letters to the bank in an attempt to prevent foreclosure. In the letters she falsely stated she had been employed at the time she bought the home. The evidence at trial showed that David J. Alexander joined his wife in making the false statement about her employment status in one of the letters sent to the bank.

This case was investigated and prosecuted as part of Operation Stolen Dreams, a national mortgage fraud sweep. The sweep was organized by President Obama’s interagency Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.

Sentencing before United States District Court Chief Judge Linda R. Reade will be set after a presentence report is prepared. The Alexanders remains free on bond previously set. Meggan Alexander faces a possible maximum sentence of 92 years’ imprisonment, a $3,250,000 fine, $400 in special assessments, and 16 years of
supervised release following any imprisonment. David Alexander faces a possible maximum sentence of 30 years’ imprisonment, a $1,000,000 fine, $100 in special assessments, and 5 years of supervised release following any imprisonment.

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Allison Tussey

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4 responses to Couple Found Guilty of Mortgage Fraud

  1. @@ Cowboy & @@daddyspeakes– I appreciate your points on both sides and can see how you would form opinions based on the article. But think about this…. What if the buyers never lied about their employment? What if they were working when they applied for the loan and before closing she lost her job? What if after she lost her job, she told her loan officer and realtor about it in fear she wouldn’t be able to make payments. What if the loan officer told the young ignorant homebuyer that it was okay as long as she was looking for another job. AND what if the loan officer threatend the homebuyer that she would be sued if she didn’t close on the loan?
    @cowboy – and no not anyone can just walk into a bank and get approved for a mortgage based on lies. That is why there are such things as underwriters, processors, and loan officers to verify EVERYTHING!! Innocent homebuyers trusted the bank….and now will take the fall! Sad.

  2. Why not prevent the fraud by employing a check and balance system that would easily detect lies. Mortgage lenders should not have approved no doc loans.

  3. there could be no fraud with out crooked buyers no doc loans all anyone had to do was lie and they could have a house if you lie on a loan app go to jail it is fraud just as it is when the big boys do it when you lie on your loan app and than lose the house and the goverment picks up the tab you have stole my money as in taxes so burn them all

  4. The task force should focus their attention on larger loans and professional theives like the mortgage brokers, realestate appraisers and agents and the banks who approved the loan. All of the people above have a judicial duty to assure that the system is protected against fraud. They all participated in the fraud against the American tax payer who insured most of the loans via Fannie Mae or Freddie Mac. Criminal charges should be brought against both Fannie and Freddie executives for their failure to audit the loans they were insuring. If they would have performed an audit on a small percentage of the loans, red flags would of alerted them to a broader problem and the nation would not be in the shape its in today.

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