Robert Green, 51, Baton Rouge, Louisiana, pled guilty to one count of aiding and abetting a conspiracy to make false statements to obtain HUD insurance. The charges in the Bill of Information arose from an ongoing federal investigation into a house-flipping scam.
The Information alleges that Green and Donald White falsified statements in several real estate appraisals and tax returns. Green pled guilty to preparing false tax returns for straw buyers in connection with fraudulent FHA loan applications at Citywide Mortgage. The fraudulent loan applications included not only false tax information, but also false credit information and an inflated real estate appraisal. Citywide approved the loans and applied for HUD insurance for the loans. Citywide sold the loans to another mortgage company. Various properties eventually went into default and HUD became responsible for paying off those loans. Green admitted that his actions were part of a larger scheme and that he prepared false tax returns for several straw buyers. According to a plea letter filed in court, Green is expected to cooperate in the investigation.
Green is the fourth person to plead guilty to charges stemming from this investigation. Three straw buyers, Timothy Falls, Dennis Addison and Dennis LeBlanc, recently pled guilty to similar charges and will be sentenced at a later date.
Green faces a possible maximum penalty of five years imprisonment and a fine of $250,000.00. Sentencing has been set for July 18, 2007.