Michael Sedor, 59, attorney, Harrisburg, Pennsylvania was sentenced to seven months in prison, followed by two years supervised release to include seven months home confinement, in connection with his role in a mortgage fraud scheme involving $16.6 million in HUD loan guarantees. Sedor pleaded guilty on May 14, 2003, to one count of conspiracy to defraud the United States.

Sedor was accused of participating in mortgage fraud in connection with a 180-house development called Barwood Estates located near Dover, Pennsylvania. The Barwood Estates investigation was initiated by HUD due to a high loan default rate at the development. According to court documents, subdivision developer Gary L. Sweitzer supplied borrower down payment and closing costs, sometimes also paying off borrower debt, in order to avoid HUD’s down payment requirements and meet income and credit minimums.

Gary L. Sweitzer, 56, Dallastown, Pennsylvania was sentenced on August 31, 2005 to 18 months in prison after pleading guilty to one count of conspiracy to defraud the United States on June 6, 2003.

Charles R. Brown, attorney, Harrisburg, Pennsylvania was sentenced on October 27, 2004 to one year of probation including six months of home confinement after pleading guilty on February 26, 2004 to one count of making false statements to HUD. Brown acted as closing agent on some of the Barwood Estates sales.

Two defendants still await sentencing in the case: Brian G. Hoch, Dover, Pennsylvania, who was the sales manager at Barwood Estates and plead guilty to one count of conspiracy to defraud the United States on May 20, 2003, and Louis N. Fierro, North Carolina, a loan officer that was previously employed by the principal lender at Barwood Estates who plead guilty to one count of conspiracy to defraud the United States on May 21, 2003. Hoch is scheduled for sentencing on November 8, 2005 and Fierro is scheduled to be sentenced on November 30, 2005.