Sharon Wenstrom, 55, Indianaopolis, Indiana, pleaded guilty 15 counts of theft before a Johnson County judge in connection with her diversion of application and appraisal fees on mortgages. She was ordered to repay the money and serve three years in prison. Wenstrom had a prior criminal record, including charges of forgery, fraud and theft.
While working at Approved Mortgage, Greenwood, Indiana, between May and June 2002, Wenstrom would deposit $300 application or appraisal fees from mortgage applicants into her personal account. Applicants would then be charged again at closing. Wenstrom was fired upon discovery of the theft.
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.