Man Jailed for Defrauding Mortgage Lenders Out of Millions of Dollars

Allison Tussey —  July 10, 2013 — Leave a comment

Kevin Derricott, 40, Rocklin, California, was sentenced to 20 months in prison for his role in a scheme to defraud lenders out of millions of dollars.

According to the sentencing memorandum, the government was seeking a 51 month prison sentence.

On February 19, 2013, Derricott pleaded guilty to conspiracy to commit wire and bank fraud and bank fraud.

Pursuant to the plea agreement, from about February 2006 through December 2008, Derricott conspired with others to submit mortgage applications to various lenders that contained materially false information about the borrower-applicants, such as inflated salary figures, inflated assets claims, or false employment information, in order to trick the lenders into making loans. Derricott also recruited borrower-applicants, procured false supporting documentation for loan applications, and submitted fraudulent loan applications to lenders in exchange for a portion of the fraudulent proceeds.

Derricott was charged on December 15, 2011, by the grand jury with conspiracy to commit bank and wire fraud, in violation of Title 18 USC Section 1349, and bank fraud, in violation of Title 18 USC Section 1344. He pleaded guilty to all counts in the indictment. The Honorable William H. Alsup, U.S. District Court Judge, imposed the sentence. Judge Alsup ordered Derricott to serve 3 years of supervised release following his imprisonment, with the special condition of 16 months’ home confinement, and ordered him pay restitution of $3.43 million.

United States Attorney Melinda Haag announced the sentence.

Kathryn Haun is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Daniel Charlier-Smith. The prosecution is the result of an investigation by the FBI and IRS-CI.

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