Man Sentenced for Fraudulently Obtaining $588,200 from CitiMortgage

Allison Tussey —  June 1, 2010 — 1 Comment

Jeffrey Michael Taylor, 36, Blaine, Minnesota, was sentenced for defrauding CitiMortgage out of $588,200.51. United States District Court Judge John R. Tunheim sentenced Taylor to 30 months in prison on one count of conspiracy to commit wire fraud in connection with his mortgage fraud crime. Taylor was charged on November 13, 2009, and pleaded guilty on December 9, 2009.

In his plea agreement, Taylor, the owner of First Solution Lending, a mortgage lending company in Maple Grove, Minnesota, admitted conspiring with an unnamed person to obtain money from CitiMortgage by securing a second mortgage through them on an Arizona property. Taylor acquired the Arizona property, a vacation get-away, in April of 2005 for $1.5 million, and in March of 2006, he attempted to sell it for $1.85 million. When the property failed to sell, Taylor initiated his fraud scheme by falsifying loan documents.

Those documents were drafted for the unindicted co-conspirator’s signature. They claimed that the co-conspirator had purchased the property in 2005 for $2.26 million and now held approximately $825,000 in equity in it. The truth, however, was that the unindicted coconspirator had never bought the property, and the property itself had little, if any, equity. Nonetheless, the fraudulent documents were submitted to CitiMortgage. CitiMortgage routinely funded mortgage loans originated by Taylor‘s lending company. Therefore, CitiMortgage loaned the unindicted co-conspirator $592,500, based on the fraudulent application supplied by Taylor. CitiMortgage secured the loan with what it later learned was a worthless second mortgage.

In entering his guilty plea, Taylor admitted that the loan proceeds were transferred from CitiMortgage to his lending company by wire transfer. He also admitted he caused the unindicted co-conspirator to sign the loan proceeds over to him. Moreover, he admitted that neither he nor his co-conspirator made any loan payments to CitiMortgage.

This case was the result of an investigation by the Federal Bureau of Investigation. It was prosecuted by Assistant U.S. Attorney David J. MacLaughlin.

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One response to Man Sentenced for Fraudulently Obtaining $588,200 from CitiMortgage

  1. WELL WHAT DO YOU KNOW ABOUT THAT!! CITI DISCOVERED A SCAM AND DID SOMETHING ABOUT IT.I AM SUPRISED, WHEN I WENT TO THE FBI IN HOUSTON YEARS AGO AND GAVE THEM PROOF OF PROPERTY FLIPPING AND FALSE APPRAISALS THEY PUT THE PAPERS IN THEIR EVIDENCE LOCKER,NEVER TO BE SEEN AGAIN FOR YEARS!! IN THAT TIME PERIOD THIS PERUVIAN WONDER SCAMED JOY CAPITAL,BANK OF AMERICA.CITI AND OTHERS.HOME FINANCEING OUT OF AUSTIN TEXAS AND MISSION MORTGAGE OT OF LA, SHOULD IN MY OPION BE QUESTIONED. WE NOW HAVE A GROUP CALLED THE LADDENT GROUP OUT OF ORANGE COUNTY CA. WHO PURCHASED 115 UNITS FOR ABOUT $800,000. INVOLVED.THESE PEOPLE CLAIM TO HAVE REHABED OTHER COMPLEXES AND MADE THEM GOOD INVESTMENTS.B-S THEY ARE TRYING TO SELL ON CONTRACT FOR DEED.BUSH SIGNED THE S.A.F.E. ACT IT IS LAW IN TEXAS.READ IT!! IT WAS PASSED TO TRY AND STOP SCAMS.

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