Toby Goss, Hinds County, Mississippi, a mortgage broker doing business as Consolidated Mortgage and Mississippi Mortgage, pleaded guilty to mortgage fraud charges and was sentenced to nearly three years in prison.

Goss was indicted in 2005 for a mortgage fraud scheme involving the falsification of documents in loan application packages with the intent to induce lenders to fund loans in reliance upon the falsified documents. According to the indictment, Goss falsified Verifications of Rent, Income and Deposit, W2 tax forms, and Social Security benefit letters. The commissions Goss received from the fraudulent loans was converted for his personal use.

Goss further created fictitious creditors to whom borrowers were supposedly indebted and include those on the HUD-1 settlement statement along with the legitimate creditors. When the settlement agent issued checks to all creditors listed on the HUD-1, Goss would convert the monies received to pay the fictitious creditors for his personal use.

The total amount obtained through the fraudulent scheme was approximately $2.2 million.