Justin Lindle Hatton, a Utah resident, the owner of a real estate investment and management company, Malibu Equity Group Inc, pleaded guilty to a straw buyer scam. Hatton also agreed to forfeit $6.2 million in connection with his role in the scam.
As previously reported by Mortgage Fraud Blog, Hatton has been charged with making false statements to a financial institution, making and subscribing a false tax return and aiding and abetting.
According to the plea agreement, Hatton falsely representing his employment, income, and his willingness and ability to service and repay a construction loan and line of credit to First Utah Bank. After obtaining the loan through First Utah Bank, Hatton failed to make payments on the loans as the terms required and caused First Utah Bank to suffer significant losses on both loan.
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.