Daniel M. Laffey, 49, Squirrel Hill, Pennsylvania and Michael D. Altman, 42, Wilkins, Pennsylvania each plead guilty to one count of bank fraud in connection with allegations that they participated in a loan fraud scheme involving approximately a half million dollars in fraudulent mortgages.
According to the indictment, Laffey and Altman were employed as loan officers by America’s Mortgage Outlet, Incorporated , a mortgage brokerage located at 339 Haymaker Road, Monroeville, Pennsylvania. According to the indictment, the defendants engaged in a scheme to defraud Flagstar Bank by preparing or assisting the preparation of mortgage loan applications containing false representations as to the credit-worthiness of borrowers. False documents were created to support the false representations by editing, altering and assembling them from a variety of documents by using templates, photocopiers and computers and the false documents were sent to Flagstar. Appraisal reports were prepared that contained false information regarding ownership, occupancy and value of the real estate. According to the indictment, mortgage loan proceeds were distributed by the settlement agent at closings in a manner contrary to Flagstar’s loan conditions, thereby causing payment of loan proceeds to be made to entities and persons other than those intended by Flagstar.
The Altman indictment identifies nine loans with a total amount of $432,650 and involves conduct occurring between August 15, 2002 and December 27, 2002.
The Laffey indictment includes identifies nine loans for a total of $532,990 and involves conduct occurring between August 15, 2002 and March 28, 2003.
Each of the plea agreements contains the following agreement of the defendants:
He will assist law enforcement agencies investigating violations of Title 18, United Sates Code, Sections 1341, 1343 and 1344 during the period from 2002 to the present date. allegedly committed by the owner, loan officers and employees of America’s Mortgage Outlet, Inc., Monroeville, Pennsylvania.
Sentencing is set for February 17, 2006.
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.