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Colorado man indicted in mortgage fraud scheme

NationalMortgageProfessional.com
Jun 14, 2010

Gary A. Noble of Denver, Colorado, was indicted by a federal grand jury in Denver, which returned a 63-count wire fraud indictment related to a mortgage fraud scheme, United States Attorney David Gaouette and Federal Bureau of Investigation (FBI) Special Agent in Charge James Davis announced. Noble was arrested by FBI special agents without incident on June 3, 2010 in California. He will make his initial appearance in U.S. District Court in Denver on June 18, 2010, where he will be advised of the charges pending against him. He was released yesterday on bond. According to the indictment, beginning on May 1, 2005 and continuing until March 3, 2006, Noble knowingly devised and intended to devise a scheme to defraud lending companies that funded residential mortgage loans and for obtaining money from them and from buyers who paid cash for a residence by means of materially false and fraudulent representations. Specifically, it was part of the scheme that Noble allegedly orchestrated the purchase of numerous residential properties by his family members, and in most cases, the resale of those properties shortly thereafter to his and his family’s associates. The defendant used companies he controlled to facilitate and conceal his scheme. Through Noble Mortgage Company, he acted as mortgage broker and arranged to have false and fraudulent documents presented to the lenders to enable the buyers to qualify for loans for the properties. Through Noble Title Agency, he acted as a title insurance agent, and caused commitments for title insurance to be issued which made it appear that the buyers would be purchasing the properties free of prior encumbrances and that the lenders would be guaranteed priority leans, when they would not be. Through Noble Title Agency, the defendant acted as settlement agent for the lenders and received all of the loan proceeds and monies associated with the loans, but failed to use them to pay off the prior loans as directed by the lenders. He also misappropriated a portion of the proceeds for his own use and benefit. Through Equity Builders, Noble diverted proceeds of the fraud and concealed payments he made to facilitate the fraud. “It is important to prosecute mortgage fraud cases to protect the integrity of the financial markets,” said U.S. Attorney David Gaouette. “Investigating and prosecuting mortgage fraud cases remains a priority for the Denver Division of the FBI,” said FBI Special Agent in Charge James Davis. If convicted, the defendant faces not more than 20 years’ imprisonment and/or a fine of not more than $250,000 per count for each of the 63 counts. Noble could also be ordered to pay restitution. This case was investigated by the FBI. Noble is being prosecuted by Assistant U.S. Attorney Linda Kaufman. The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. This case is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information, visit http://denver.fbi.gov.
Published
Jun 14, 2010
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