Former Police Officer Pleads Guilty to Loan Application Fraud

admin —  May 13, 2010 — Leave a comment

James O’Brien, 37, Cape Coral, Florida, pleaded guilty to loan and credit application fraud. O’Brien faces a maximum penalty of thirty years in federal prison.

According to the plea agreement, O’Brien, a former police officer with the Cape Coral Police Department, falsified a loan application for residential property in order to obtain a mortgage for which he otherwise would not have qualified. The loan application included an inflated sales price for the property, inflated monthly income, inflated checking account balances, inflated rental income, and a fraudulent statement of intent to use the property as a primary residence. The fraudulent loan application induced the lender financial institution to give O’Brien a loan in the amount of $593,750.00. In addition, the Housing and Urban Development (HUD) settlement statement presented to the financial institution indicated a payoff amount for existing liabilities of $150,000.00. That money was not utilized to pay off existing liabilities, however, but was disbursed to corporate entities for the benefit of the various members of the transaction, including O’Brien.

This case was investigated by the United States Secret Service, Internal Revenue Service-Criminal Investigation, and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Nicole H. Waid.

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