LO Convicted in $3 Million Mortgage Fraud Case
Following a six-day jury trial, Nicholas Lindsey of Billings, Mt. was convicted of nine counts of wire fraud and one count of aggravated identity theft for his role in a mortgage fraud scheme, announced Daniel G. Bogden, United States Attorney for the District of Nevada. “Many innocent homeowners in Nevada have suffered because of this type of crime involving fraudulent residential mortgage transactions,” said U.S. Attorney Bogden. “Since 2008, when the FBI and our office made mortgage fraud prosecutions a priority, we have investigated, charged, and convicted hundreds of persons for federal mortgage fraud crimes, and most of them are now serving time in federal prison.”
According to the indictment and evidence presented to the jury during the trial, from about May to September 2006, Lindsey, who worked as a loan officer for Clear Mortgage and Signature Mortgage, recruited straw buyers to participate in what he described as a lucrative real estate investment opportunity by purchasing five homes in the Las Vegas area. Evidence at trial demonstrated that Lindsey secured over $3 million in mortgage loans by knowingly causing to be placed in the straw buyers’ mortgage loan applications false information concerning the buyers’ income, assets, and intents to occupy the homes. Once the mortgages were approved, Lindsey fraudulently diverted to his bank account a portion of the proceeds disbursed from escrow and used these funds for his own benefit. Lindsey realized additional profits by living in or renting out properties in the buyers’ names.
In addition to the five homes of which the buyers were aware, Lindsey stole two buyers’ identities and used their personal information to purchase three additional properties in their names. The evidence established that Lindsey leased two of these properties and collected rental income and used the third as his own personal residence. After collecting profits, Lindsey stopped making the mortgage payments on the properties and allowed all eight homes to default in the borrowers’ names, causing an estimated loss to lenders of $1.6 million.
Lindsey was ordered detained pending sentencing. He is scheduled to be sentenced by Senior U.S. District Judge Lloyd D. George in July and faces up to 30 years in prison on each fraud count, as well as two years in prison on the aggravated identity theft count, which must be served consecutively to any prison term ordered on the fraud counts. He also faces fines of up to $1 million on each count.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Christina Brown and Department of Justice Trial Attorney Brian Young.
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