Man Jailed for Using Falsified Tax Documents to Qualify for Mortgages

Allison Tussey —  June 18, 2014 — Leave a comment

David E. Robert, 42, Madison, Wisconsin, was sentenced on June 12, 2014, by U.S. District Judge Barbara B. Crabb to six months in federal prison, a $1,000 fine, and two years of supervised release for his role in a mortgage fraud scheme wherein he used a falsified tax documents to obtain a first and second mortgage.

The defendant was also ordered to pay $336,100 in restitution. On April 3, 2014, Robert pleaded guilty to the indictment, which was handed down on October 10, 2013.

Robert was the owner of Western Designs and Sterling Concepts, residential construction companies that operated in Dane County. Between March 16 and April 21, 2006, Robert conspired with Becky L. Ring, formerly known as Becky L. Stoltenberg, and P. Edwin Gray to make false statements to Washington Mutual Bank to secure a first and second mortgage for the purchase of a home in Westport, Wisconsin.

Ring was the former owner of JC Mortgage, Madison, Wisconsin, and P. Edwin Gray, Oregon, Wisconsin, was Robert’s accountant. Gray falsified Robert’s income on a W-2, which allowed him to qualify for the mortgage loans that he otherwise would not have obtained. Stoltenberg acted as the mortgage broker on the loans and transmitted the documents to the bank.

Gray pleaded guilty to mortgage fraud on August 12, 2012, and was sentenced to three years of probation on October 11, 2012, which was later reduced to one year of probation. Ring pleaded guilty to mortgage fraud on November 15, 2012, and was sentenced to one year of probation. Gray had paid $700 towards restitution. Ring paid the remaining restitution owed of $335,400 prior to her sentencing. Robert will pay nothing towards restitution as the law requires that he be given credit for the payment of restitution by the co-defendants.

John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced the sentence.

The charge in this case was the result of an investigation conducted by the Madison office of the Federal Bureau of Investigation. The prosecution of this case has been handled by Assistant U.S. Attorney Peter M. Jarosz.

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