Investor Sentenced for $4M Mortgage Fraud Scam

Allison Tussey —  May 5, 2011 — 2 Comments

Dustin Thompson , 32, Phoenix, Arizona, was sentenced to 27 months in prison for his involvement in a $4 million mortgage fraud scheme. Thompson pleaded guilty to one count of Conspiracy to Commit Wire Fraud, a felony, related to his participation in a two-year conspiracy involving the purchase of 24 properties in Phoenix, Arizona using fraudulent loan documents. One other co-conspirator was also charged and has pleaded guilty.

The case against Thompson was based on an investigation by the Internal Revenue Service and Federal Bureau of Investigation. Investigators discovered that from 2005 through June of 2007 Thompson conspired to commit mortgage fraud by submitting fraudulent mortgage loan applications on behalf of straw buyers, under false pretenses. He obtained and disbursed the proceeds of the fraudulently obtained loans, including directing $1.2 million of the proceeds to a bank account under his control. Thompson used the proceeds from the fraud for personal expenses and to finance other “get rich” schemes. Thompson received a reduced sentence due to his early guilty plea and cooperation. The entire conspiracy resulted in a loss to lending institutions of approximately $4 million.

The prosecution is being handled by Kevin M. Rapp, Assistant U.S. Attorney, District of Arizona, Phoenix.

“Driven by greed, this defendant schemed the system and engaged in the type of mortgage fraud that has destroyed property values, lending institutions, and entire neighborhoods in our community,” said U.S. Attorney Dennis K. Burke. “This office, along with our partners in the FBI and IRS, is committed to prosecuting those who engage in mortgage fraud and putting them in prison.”  

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Allison Tussey

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2 responses to Investor Sentenced for $4M Mortgage Fraud Scam

  1. And how many of these people wait 2 years and file bankruptcy after closing their LLC’s and the BK Courts are unaware of the amt of monies these people took in for their own personal greed. Due to not reporting to IRS, or misrepresenting themselves on BK filings. There are several doing this in Arizona claiming they have no assets.

  2. NOW THATS JUST GREAT.BUT AT PINE VILLAGE NORTH TOWNHOMES IN HARRIS COUNTY TEXAS,A PERSON FROM PERU HAD 213 T/H LOANS HE LET GO BACK TO CITY CORP,BANK OF AMERICA AND OTHERS LOANS BASED ON FALSE APPRAISALS AND OTHER MISS IFORMATION.NOW WE HAVE THE REMANS OF THE LADDENT GROUP FROM ORANGE COUNTY CA.(THE D.B.A.WAS TAKEN OUT IN SANDIEGO ON 5,SEPT 2005) YOU WILL FIND THAT THAT PERSON LIVES IN SAN JUAN CAPISTRANO,ANOTHER LIVES IN LAGUNA BEACH.ALL NFO WAS GIVEN TO THE GREAT F.B.I. YEARS AGO BUT THEY ARE NOT DOING ANYTHING ABOUT IT. G.UBER USN RET

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