Conspirators Sentenced for Inflating Purchase Prices

Allison Tussey —  April 5, 2013 — Leave a comment

Quincy Dynell Harrington, Corinth, Texas, has been sentenced for his role in a mortgage fraud scheme.  Harrington was sentenced by US District Court Judge Richard Schell to 18 months in prison, followed by 3 years of supervised release.

Jimila Nicole Allen, Grand Heights, Texas, was also sentenced by Judge Schell to 24 months in prsion, followed by 3 years of supervised release.

Both defendants are required to surrender on April 26, 2013, to begin serving their sentences.

As previously reported by Mortgage Fraud Blog, the defendants were charged with money laundering in connection with a mortgage fraud scheme involving six homes in Denton, Mansfield, Cedar Hill and Arlington, Texas. A third individual, Edward Rogers, Midlothian, Texas, was charged in a separate indictment with making a false statement to a federal agent in connection with his purchase of one of the homes. Rogers pled guilty and was sentenced to 6 months in prison.

The indictment alleged that Harrington was a mortgage loan broker, and that he, Allen, and an unnamed conspirator caused mortgage loans to be funded by lenders for amounts in excess of the purchase prices of the properties. This was done by overstating the amount of the purchase prices in loan applications made on behalf of borrowers they solicited to make the home purchases.

The indictment alleged that the three conspirators used the excess loan funds to pay themselves and to pay kickbacks to the home buyers for making the purchases. The conspirators concealed the kickbacks from the lenders by causing settlement documents to reflect that these sums were owed for fees and services to third parties, and that they caused the kickback payments to be made to business entities that the conspirators controlled.

Both Harrington and Allen pled guilty to the charges.

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Allison Tussey

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