Mortgage Fraud Fugitive Sentenced to 14 Years

Allison Tussey —  September 12, 2012 — 2 Comments

Christopher J. Warren, 30, formerly of Folsom, California, and currently in federal custody, was sentenced by United States District Judge John A. Mendez to 14 years and seven months in prison, more than $19 million in restitution, and a three-year term of supervised release.

As previously reported by Mortgage Fraud Blog, on January 10, 2012, Warren pleaded guilty to one count of wire fraud and one count of aggravated identity theft related to a $19 million fraud scheme. At his plea hearing, Warren admitted to causing mortgage lenders losses of $12.4 million in connection with his employment at Loomis Wealth Solutions, Roseville, California. Warren also admitted separately to defrauding lender Taylor, Bean & Whitaker of approximately $7.4 million.

Warren was indicted in 2009 after defrauding lender Taylor, Bean & Whitaker of more than $7 million and fleeing to Beirut, Lebanon on a privately chartered jet. Hours before leaving the country, Warren published a document on his company Triduanum‘s website claiming responsibility for hundreds of millions in fraudulent mortgage loans and stating that he modeled his business activities on the movie “Boiler Room.”

In the posting, Warren stated that the government was incapable of reforming the mortgage and securities industry. Warren concluded that, “I am the man for the job, Chris Warren, have the management experience, the banking experience, and could assist in the oversight of the most major transformation of mortgage regulation … and restore confidence in the American dream.” Hours later, traveling on a fraudulently obtained passport, Warren boarded a plane for Beirut with a bag full of gold bullion he had purchased with millions in fraud proceeds. Warren was arrested in the hours after midnight on February 10, 2009, at the U.S.-Canadian border, attempting to reenter the United States with tens of thousands of dollars hidden in his cowboy boots.

United States Attorney Benjamin B. Wagner announced the sentence.

This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, and Department of State Diplomatic Security Service. Assistant United States Attorneys Russell L. Carlberg and Paul A. Hemesath prosecuted the case. A co-defendant, Scott Cavell, remains a fugitive.

“Mr. Warren’s arrogance and greed led him where is today,” said U.S. Attorney Wagner. “This is a very significant mortgage fraud sentence. Warren ran his own mortgage and escrow companies and was instrumental in a number of extensive frauds that affected the financial industry in this country.”

The announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

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Allison Tussey

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2 responses to Mortgage Fraud Fugitive Sentenced to 14 Years

  1. what ever happened to jason piette an accomplice in the james McConville scheme

  2. FINALLY! Now let’s see what or if they do anything to Lee Loomis!

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