Two Indicted for Florida Straw Borrower Scheme

admin —  September 11, 2007 — 3 Comments

Matthew Price II, and Jennifer Stimpson, were charged with violations resulting from a long-term scheme to commit mail and wire fraud and depriving the citizens of Florida City, Florida of Price’s honest services. Price was the former Director of Housing and Economic Development for Florida City. A federal grand jury has indicted Price and Stimpson for conspiracy to commit mail and wire fraud, in violation of Title 18, U.S.C. Section 1349, as well as substantive mail and wire fraud violations, in violation of Title 18, U.S.C. Sections 1341, 1343, and 1346.

According to the Indictment, Price and Stimpson conspired to obtain a mortgage for Price’s personal residence when Price could not qualify for financing, using a straw purchaser who was a Florida City employee. The scheme also included efforts to use Price’s official position as Director of Housing and Economic Development to reward Stimpson and the straw purchaser for their assistance by selling the Florida City property to Stimpson’s family at a depressed price. This allowed the re-sale of the property at a substantial profit, allowing Stimpson to profit. In addition, Price used his official position to help secure affordable housing and grant money for the straw purchaser, who otherwise did not qualify for those benefits. The indictment also alleges that Price funded the straw purchase of his home with funds from a contractor doing business with Florida City. Additionally, the Indictment charges that Price, acting on his own, inappropriately rented Florida City affordable housing property in order to collect rental payments for his personal profit and use.

Each defendant faces a statutory maximum of 20 years’ imprisonment for the conspiracy and each substantive count, as well as a fine, and mandatory restitution.

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3 responses to Two Indicted for Florida Straw Borrower Scheme

  1. Why don’t the Govt. investigate the F’N Banks how they are frauding the american people.
    I’t OK for the Banks to screw the american people and ruin their credit score by telling them lie’s…
    Banks can go to HELL for all I care….

  2. We investigate mortgage fraud all over south Florida. Check us out at

  3. Can someone please help me understand the straw purchaser situation? I have recently discovered that my b/f has changed his surname to his mother’s maiden name then either sold his house to himself in the new name OR he may have just put the house into that name without any type of financial transaction. Since I’m not familiar with how this works, I don’t want to confront him until I have all the facts. Am I on the right track with this or is this something harmless that he’s doing ‘just on paper?’ I’m extremely concerned that something fraudulent may be occurring.

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