Robert L. Dodsworth, 60, Erie County, Pennsylvania, pleaded guilty to felony charges that he engaged in mortgage fraud in the city of Erie, Pennsylvania. Dodsworth entered the plea at a hearing before U.S. District Court Judge Sean J. McLaughlin.

Dodsworth pleaded guilty to the felony counts of money laundering and conspiracy, criminal conspiracy to commit mail fraud, wire fraud and bank fraud. He faces a maximum of 25 years at his sentencing on March 4, 2008.

As previously reported by Mortgage Fraud Blog, Robert L. Dodsworth was accused of a mortgage-fraud scam that included misrepresenting Borrower income and financials. Dodsworth is also alleged to have manipulated the bank accounts of prospective homeowners.

According to the criminal information, Dodsworth, owner of several Pennsylvania corporations, from January 2003 through March 2006, in the Western District of Pennsylvania, conspired with others to obtain investors for the purpose of procuring funds for the purchase distressed, low cost real estate in Erie, Pennsylvania. Dodsworth intended to sell the properties at drastically and artificially inflated prices. Dodsworth and his coconspirators allegedly sought out individuals with limited sophistication and economic resources as buyers for the distressed properties being offered for sale by the defendant and/or one of his several businesses. To that end, Dodsworth tailored the loan applications to lenders to ensure the borrower's creditworthiness, often by significantly misrepresenting the borrower's income and assets.