Indictment Unsealed in Mortgage Fraud Investigation

Allison Tussey —  November 11, 2010 — Leave a comment

Douglas Heald, Sacramento, California; Brandon Hanly, Redding, California; and Jerad Maggi have been indicted for their roles in an alleged scheme to defraud mortgage lenders.

According to the indictment, in 2005 and 2006, the defendants altered appraisal documents and title reports in order to obtain $5 million in mortgage loans with $1.5 million in “cash out” loans that would not have been made but for their fraud. Nine of the mortgaged properties were in Redding and one was in Lodi, California.

Heald and Hanley self-surrendered and were arraigned before United States Magistrate Judge Gregory G. Hollows. They pleaded not guilty and are set to appear before U.S. District Judge William B. Shubb on December 21, 2010. Maggi is sought by the FBI.

The case stems from the successful prosecution of Joshua Gervolstad, a Redding mortgage broker who on July 12, 2010 was sentenced to three years in prison and ordered to pay $1.4 million in restitution.

United States Attorney Benjamin B. Wagner made the announcement.

This case is the product of an extensive investigation by the FBI. Assistant United States Attorneys Matthew D. Segal and Jared C. Dolan are prosecuting the case.

The maximum statutory penalty for a violation of mail fraud and wire fraud is 20 years in prison and a $250,000 fine. The maximum statutory penalty for money laundering is 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

The charges are only allegations and the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

 

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Allison Tussey

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