David C. Jackson, 45, New Kensington, Pennsylvania, was sentenced to 41 months in prison and ordered to pay $1,291,175 in restitution after pleading guilty to bank fraud and money laundering in connection with a $1.6M mortgage fraud scheme.

Jackson was one of eight defendants charged in the mortgage fraud conspiracy that allegedly involved the purchase of 27 properties and sale of the properties at inflated prices. The properties were located in poor communities, primarily Wilkinsburg, Pennsylvania.

Troy Anderson, Lavelle Snead, Robert Kohlman, David Jackson, and the other defendants, from 1999 through the early part of 2001, devised and perpetrated a scheme to defraud banks and other lending institutions by submitting false loan applications and engaging in a property flipping scheme that involved bogus sales for inflated amounts to straw purchasers. Anderson acted as one such straw purchaser of four real properties involved in the scheme, as well as obtained loans in excess of $200,000 in relation to those properties. Snead recruited some of the straw purchasers and worked with Kohlman and Jackson to secure the fraudulent loans. Jackson, a mortgage broker doing business as Comvest Capital, prepared and processed the fraudulent loan applications, as well as falsified tax returns and W-2's submitted in support of the loan applications for in excess of $1.6 million in loan proceeds. The proceeds of the fraud were primarily deposited into a bank account maintained by Snead, from which fees paid to Jackson, Anderson and the other straw purchasers were withdrawn. Loan proceeds were also used to make periodic payments on the fraudulently obtained loans in order to conceal and further the scheme.