Darrell L. Marriott, 54, and Kandace Y. Marriott, 51, both of Gun Barrel City, Texas, Henderson County, as well as Karen Hayes, 56, Kemp, Texas, Kaufman County, were indicted by a Navarro County, Texas, grand jury for engaging in an organized mortgage fraud scheme that crossed four counties, Navarro, Henderson, Ellis and Kaufman Counties. The criminal conspiracy, which involved loans backed by the U.S. Department of Housing and Urban Development (HUD), cost the agency more than $3 million.
Evidence obtained by investigators indicates the defendants, doing business as One Way Home & Land, falsified residential loan applications in order to ensure that the buyers' loans were approved by mortgage lenders. According to prosecutors, the defendants illegally forged purchasers' signatures, inaccurately completed loan applications, and falsified supporting documents, including the buyers' rent payment verification statements, proof of employment, and Social Security Administration benefits information, among other documents.
According to authorities, the scheme involved predominantly low-income purchasers whose residential loans were guaranteed by HUD. As a result, when the unqualified buyers defaulted on their home loans, their mortgage lenders did not suffer financial losses. Instead, HUD had to cover the costs. As a result, investigators believe the defendants' scheme cost the taxpayers more than $3 million.
After it became clear the conspiracy encompassed multiple counties, prosecutors with the Office of the Attorney General offered assistance to the district attorneys in whose jurisdictions the criminal conduct occurred. In 2007, the Texas Legislature passed a law allowing the Office of the Attorney General to formally offer prosecutorial assistance to local district attorneys who otherwise retain exclusive original prosecutorial jurisdiction in most cases. Prior to the passage of Senate Bill 2037, Texas law did not allow the Attorney General to proactively offer prosecutorial assistance to local prosecutors.
A first-degree felony conviction can result in five to 99 years or life in prison, and a maximum $10,000 fine.
In September 2007, Attorney General Abbott launched the Texas Residential Mortgage Fraud Task Force, a partnership that involves key state regulatory agencies in taking a proactive stance toward tracking and prosecuting mortgage fraud.
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.