Christopher D. Hales, 30, Midvale, Utah, was sentenced to seven and half years in prison according to media reports.
As previously reported by Mortgage Fraud Blog, Hales was indicted on 10-counts of mail, wire, and bank fraud and with money laundering in connection with a mortgage fraud scheme. The indictment involves two properties, one in Lindon, Utah and one in Salt Lake City, Utah.
The indictment alleges Hales and other unindicted co-conspirators executed a scheme to produce income from false appraisals to artificially inflate the purchase price of the residences. Hales arranged to purchase the homes through straw buyers and took the false equity proceeds stemming from those sales for himself, the straw buyers, and the co-conspirators.
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.