DC Man Busted for Defrauding Banks in Mortgage Scheme – NMP Skip to main content

DC Man Busted for Defrauding Banks in Mortgage Scheme

NationalMortgageProfessional.com
Oct 04, 2011

Akinola George of Washington, D.C., has pled guilty to charges of conspiracy to commit bank fraud and mail fraud for his role in a mortgage fraud scheme in the U.S. District Court for the District of Columbia. George entered his guilty plea to the charge before the Honorable Reggie B. Walton. He also agreed to forfeiture of $2.4 million, and is to be sentenced on Dec. 9, 2011. Under federal sentencing guidelines, he faces a recommended sentence between 27 and 41 months in prison, along with restitution, a fine, and other conditions. According to the statement of offense, signed by the defendant, from October 2004 to April 2008, George, with the assistance of others, defrauded banks and other lenders of money through false statements and misrepresentations. George used about 22 sales of residential real estate properties (all but two sales were for property in the District of Columbia) to fraudulently obtain mortgage loans. Loan documents in support of these mortgages listed false employers and false salaries for the buyers, exaggerated the assets available to the buyers to pay back the loans and make a cash contribution, and incorrectly listed the buyers' intent to occupy the houses. During the settlement of the sales transactions, thousands of lender dollars were siphoned off through fake “renovation” invoices and misrepresentations on the settlement documents.  Through this process, George, fraudulently obtained approximately $2.4 million, even though he was not the seller on any of the properties. George used some of this money to pay for the assistance of others in the conspiracy, to share with other co-conspirators, and to pay for bogus “downpayments” for the buyers, as well as other items. For many properties in the District of Columbia, a co-conspirator acting as the settlement agent submitted the signed Deed or Deed of Trust to the District of Columbia’s Recorder of Deeds, with the instructions that after recordation, the documents be mailed back to the title company, which did occur. After closing, the co-conspirators failed to continue to pay the mortgages on some of the properties. The lenders were forced to foreclose and resell the properties at a loss.
Published
Oct 04, 2011
CFPB Seeks Insight On Creating A Fairer Mortgage Market

The Consumer Financial Protection Bureau has been actively looking to create a fairer mortgage market, free of discriminatory engagements. To do so, it issued a Request for Information to seek input on rules implementing the Home Mortgage Disclosure Act.

Regulation and Compliance
Nov 17, 2021
Regulators Renew Effort to Protect Against Foreclosures

CFPB, The Fed, FDIC and other agencies will watch for compliance with COVID-19 protections

Regulation and Compliance
Nov 10, 2021
Fed To Begin Tapering Asset Purchases by 14.3% This Month

Also sets target range for the federal funds rate at 0 to 1/4%.

Regulation and Compliance
Nov 03, 2021
CFPB Cracks Down On Discriminatory Credit Reporting For Black And Hispanic Consumers

Consumers in majority Black and Hispanic neighborhoods are far more likely to have disputes appear on their credit reports. 

Regulation and Compliance
Nov 03, 2021
CFPB Names 2 New Assistant Directors

Former Obama Administration officials will lead Supervision Policy, Enforcement divisions.

Regulation and Compliance
Oct 29, 2021
FHFA Proposes Extra Disclosure Rules For Fannie, Freddie

The proposed rule for the Enterprise Regulatory Capital Framework seeks to put Enterprises on a "level playing field" with U.S. banking requirements.

Regulation and Compliance
Oct 28, 2021