Sentences have been handed down in a major mortgage fraud ring that federal authorities cracked in the South Carolina town of Anderson.
A group of seven women working as loan officers, mortgage brokers and appraisers were busted for conspiring to “prepare fraudulent and inflated appraisals” for loans being refinanced in South Carolina through National City Mortgage Co. of Miamisburg, Ohio, according to a written statement from the U.S. Attorney’s office in Columbia.
Between February of 2001 and August of 2002 “more than 120 properties were over-appraised by at least $50,000 each, totaling nearly $13.5 million in inflated values,” U.S. Attorney J. Strom Thurmond Jr. said in the statement.
“The defendants admitted to profiting from the scam by collecting inflated fees and commissions resulting from National City’s approval of the increased loan amounts,” Thurmond said.
“National City reported losses to date of more than $3 million on 49 of the loans that had already failed. It expects to incur more losses, as other loans in the case have gone into default, he said.
The seven were sentenced by U.S. District Judge G. Ross Anderson Jr. Twelve more codefendants await sentencing, Thurmond said.
Three of the women were sent to prison while four others were placed on probation. All were ordered to pay restitution “in amounts reflecting their relative involvement in the conspiracy,” Thurmond said.
The restitution totaled more than $1.6 million.
Former National City loan officer Deirdra H. Williams, 40, was sentenced to 20 months in prison and ordered to pay $698,253 in restitution.
During her sentencing Williams stood before the judge weeping, her 15-year-old son at her side, according to an account printed in the Anderson Independent Mail.
Her lawyer asked the judge for leniency because Williams is a single mother, the paper reported.
Assistant U.S. Attorney Kevin McDonald told the paper that Williams assisted in the investigation.
Another defendant, Barbara S. Wright, was identified by prosecutors as one of the key players in the scheme. Wright, 39, was also given 20 months in prison and ordered to pay $651,720 in restitution. She also provided investigators with information.
Sandra Lynn Brashier, 48, a former mortgage broker with Service First Mortgage Co., will spend 24 months behind bars and must repay $256,038 in restitution costs.
Also sentenced were three former Service First loan officers – Michelle Dianne Breazeale, 29, Emily Carol Norris, 25, and Linda Marie LeCroy, 56. All were placed on federal probation and ordered to pay restitution in amounts ranging from $5,825 to $11,633.
Service First is no longer in business.
Finally Kim N. Spearman, 33, a former loan officer with Kelly Group Inc., was also sentenced to probation and told by the judge to pay $5,825 in restitution.
None of the defendants will ever be allowed to work with or for a mortgage brokerage company, according to Thurmond’s office.
MortgageDaily.com was unable to reach the defendants for a statement.
