Former Virginia Beach Attorney Sentenced to 66 Months for Mortgage Fraud

admin —  August 19, 2009 — 5 Comments

Kristina Marie Cardwell, 39, Virginia Beach, Virginia, a former attorney, has been sentenced to 66 months in prison for her participation in a mortgage fraud scheme, federal authorities. She was also sentenced to serve a three-year period of supervised release after her incarceration and to pay $708,339.60 in restitution. Cardwell pled guilty to committing wire fraud on Dec. 4, 2008, and was sentenced by United States District Judge Raymond A. Jackson. On April 14, 2009, Cardwell consented to revocation of her license to practice law.

According to court documents, Cardwell was employed by law firms associated with co-defendant Troy Aurelius Titus for almost ten years. In a statement of facts filed with her plea agreement, Cardwell admitted that between May and October 2005 she purchased three residential properties in Virginia Beach from entities associated with Titus. She purchased the properties in her own name and received mortgages on the properties in her own name, although both she and Titus intended for Titus to retain control over the properties and sell them to third parties at a later time. The funds taken from Cardwell’s purchases were used to cover some of Titus’s financial obligations. Cardwell admitted that while applying for the mortgages, she made false statements about her income, assets and financial liabilities. During the application process, thousands of dollars were moved into Cardwell’s bank account to inflate her account balance then moved out of the account. In one instance, Cardwell authored a letter to a lender falsely claiming that she had received a $91,000 disbursement of funds from her firm.

This case is being investigated by the Federal Bureau of Investigation and the Virginia State Corporation Commission with assistance from the Virginia State Bar and the Virginia Attorney General’s Office. Assistant United States Attorneys Michael C. Moore and Melissa E. O’Boyle are prosecuting the case on behalf of the United States.

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5 responses to Former Virginia Beach Attorney Sentenced to 66 Months for Mortgage Fraud

  1. I know first hand that this woman is a crook and very dishonest. I wanted to turn her in for what she did to me, but I knew she had an infant and felt sorry for her. I had co-power of attny over my Dad and warned her of my siblings who may contact her to change things. Sure enough my sibling brought my Dad overmedicated (saw him in the morning and he couldn’t even tell he hadn’t drank any of the juice in front of him) into see Christina Cardwell to change his will and power of attny. The sibling then gave my Dad 10 minutes to get his stuff and took him out of state and put him in a assisted living where he is the only one who can walk on his own. I was never notified by Cardwell that she met with my sibling and it took me 6 weeks to find out where he was and now it has been 2 years of misery. My father’s money is misused and Cardwell is directly responsible for my father having a terrible end of life experience when he had the money to stay in his home and have care or go to a upscale assisted living. She was so nasty to me and believed the lies of the sibling to justify what she did to my father or was it just the additional money she got for revising the will and really didn’t give a damn about any of us involved????????????? Thanks Christina – remember there are consequences for the actions you take – and I didn’t do anything about what you did to me, but I see I wasn’t the only one you have hurt.

  2. Let’s not overlook the fact that this woman was a lawyer. She conspired with her client to help him defraud banks out of money. She not only lied on her own loan applications, she prepared false documentation to help him get loans.

    Lawyers are officers of the court and have a duty to the public, our clients and the judicial system. “Lying, cheating and stealing” is not acceptable conduct for anyone but is viewed as less so when the participant is a lawyer. And, judges tend to throw the book at them – because not only SHOULD lawyers know better but they DO know better … and are held to a higher standard.

  3. voyageHomeLoansCA August 19, 2009 at 9:56 pm

    The home mortgage industry has seen the fall of many banks, and mortgage brokers due to fraud over the last few years. Mortgage brokers, Banks, FHA mortgage lenders, and Conventional lenders are now taking huge steps to prevent this from happening on such a large scale like we are reading about now. The future of owning a peice of the American dream, and restoring our confidence in the economy are depending on it.

    Jason Estes
    Voyage Home Loans

  4. If this woman got 5 years for lying on a mortgage application, the entire justice department needs to be overhauled! The national mortgage broker association has stated that nearly 86 percent of mortgage applications have information that some could say is fraud. There has to something missing!!!

  5. There must be something missing in the details.

    She over stated her income and assets and gets 5yrs plus???


    This doesn’t sound right (sigh).

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