Seth Srader, 35, has been convicted of conspiring to commit mail fraud and wire fraud as part of a scheme to defraud residential mortgage lenders. Srader pleaded guilty on Thursday, December 11, 2008, before United States District Judge Keith Ellison.

Srader was charged in a criminal information related to a six-defendant indictment charging a mortgage fraud scheme which involved the recruitment of individuals to purchase residential properties at or near 100% financing using their good credit. The borrowers were paid from the loan proceeds for their participation in the acquisition of the property. Loan officers at mortgage brokerage offices were utilized to furnish false and fraudulent information to the lenders. Loan proceeds would be disbursed to one or more of the conspirators through checks or wire transfers from the title company to a bank account established in an assumed name.

Srader participated in the scheme as a borrower. He purchased two residential properties in the Houston, Texas area, borrowing a total of $869,310. Each loan was obtained using false and fraudulent information. The residential loans obtained by Srader during the scheme eventually fell into default.

Srader has been permitted to remain free on bond pending sentencing, which has been set for March 3, 2009, at 10:30 a.m. Srader faces up to 20 years in federal prison to be followed by a maximum of three years of supervised release and a maximum fine of $250,000.

The investigation leading to the charges was conducted by the FBI, Department of Housing and Urban Development - Office of Inspector General and the Internal Revenue Service Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Melissa Annis.