Frederick Allison, 41, former banker, Greeley, Colorado, plead guilty to theft between $500 and $15,000 a felony. He faces a maximum of two years in prison and might also be sentenced to community corrections or probation. He was accused of obtaining a mortgage based on fraudulent documents. He is scheduled to be sentenced November 16, 2005.
According to court records, Allison obtained a $40,000 mortgage loan from Lesh Mortgage Lending, Greeley, Colorado in order to improve a property in Drake, Colorado that he claimed he owned. Allison was vice president and a loan officer at New Frontier Bank (he was later fired according to media reports). Allison did not repay the full loan.
Allison has also been charged with theft, forgery of a government-issued document and defrauding a secured creditor in Larimer County.
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.