Man Admits Defrauding Mortgage Lenders

Allison Tussey —  August 21, 2014 — 1 Comment

Richard Hollern, 39, Grand Ledge, Michigan pled guilty before U.S. District Judge Robert Holmes Bell to a conspiracy to commit bank fraud in connection with his ownership in CDC Investments.

Hollern faces up to five years in prison. Sentencing in the case is scheduled for December 1, 2014.

Hollern admitted that he conspired with others at CDC, a Lansing real estate and investment company, to defraud banks in connection with mortgage loans. The fraudulent scheme enabled the perpetrators to use bank funds to enrich themselves as a result of sham real estate transactions. The felony conspiracy charge alleges that Hollern and his coconspirators at CDC defrauded mortgage lenders on 30 separate occasions resulting in losses of $2,325,000.

Hollern’s prosecution is the result of an investigation by the Mortgage Fraud Task Force, comprised of federal investigators including the FBI, U.S. Secret Service, the U.S. Postal Inspection Service and the HUD Office of Inspector General. The task force also includes the Lansing Police Department, investigators employed by the Michigan Attorney General’s Office and other state agencies.

To date, eleven individuals have been convicted of mortgage fraud as part of this effort, resulting in prison sentences for all the defendants and restitution orders exceeding $14,000,000. Two additional individuals, Anthony Grundstrom and Brent Nolan have pled guilty and are awaiting sentencing.

U.S. Attorney Patrick Miles announced the guilty plea.

U.S. Attorney Miles noted the cooperation among federal, state and local investigators participating in the Mortgage Fraud Task Force. He also emphasized that its work was not finished: “Mortgage fraud played a significant role in the financial crisis that brought much misery to Michigan citizens. My office will continue to vigorously pursue the perpetrators of these frauds so they will face the punishment they have earned.”

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Allison Tussey

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One response to Man Admits Defrauding Mortgage Lenders

  1. Do you know what he was sentenced?

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