Participant in 2 Different Mortgage Fraud Schemes Pleads Guilty

admin —  March 9, 2010 — Leave a comment

John Polosky, 40, McMurray Pennsylvania, pleaded guilty in federal court to charges of wire fraud conspiracy and filing false tax returns.  

In connection with the guilty plea and according to court documents, Polosky participated in two different mortgage fraud conspiracies, one in the Western District of Pennsylvania and one in the Eastern District of Pennsylvania. In both conspiracies, Polosky acted as a loan officer for First Capital Home Equity, which was a mortgage broker company that assisted buyers and home owners secure financial collateralized by real estate.

Loan officers at First Capital Home Equity regularly submitted fraudulent appraisals that had been prepared by Kenneth Cowden, who was not a licensed appraiser and regularly submitted appraisals that vastly overstated the true fair market value of the properties that were serving as collateral for the loans.

Fraudulent appraisals were just one aspect of the fraud. Individuals associated with First Capital, including Polosky, regularly submitted loan applications to lenders that falsely represented the financial condition of the borrowers, including their income and assets. Those individuals also submitted fraudulent documents that supported those false representations, including pay stubs, W2s, and similar types of documents. In addition, Polosky submitted false tax returns that vastly understated his income.

United States District Judge Joy Flowers Conti scheduled sentencing for July 2, 2010. The law provides for a total sentence of 43 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.

Acting United States Attorney Robert S. Cessar made the announcement.

The Mortgage Fraud Task Force conducted the investigation that led to the prosecution of Polosky. The Mortgage Fraud Task Force is comprised of investigators from federal, state, and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the United States Secret Service; Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; and the United States Postal Inspection Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff’s Office; the Pennsylvania Attorney General’s Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee’s Office.

Be Sociable, Share!


Posts Google+

No Comments

Be the first to start the conversation.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>