Skip to main content

Co-Schemers Sentenced in Washington Mortgage Fraud Case

NationalMortgageProfessional.com
Jan 29, 2013

Three Pierce County, Wash. women who played important roles in a mortgage fraud scheme that crippled the now defunct Pierce Commercial Bank have been sentenced in U.S. District Court in Tacoma, announced U.S. Attorney Jenny A. Durkan. All three of the women worked for years with scheme leader Shawn Portmann, whose fraudulent loans resulted in losses of more than $10 million. Portmann will be sentenced later this month. U.S. District Judge Benjamin H. Settle will determine restitution later this year. Loan Underwriter Jeanette R. Salsi of Bonney Lake, Wash., was sentenced to seven months in prison, four months of home confinement, and three years of supervised release for conspiracy. In 2004, Salsi followed Portmann from a different mortgage lender to PC Bank Home Loans (a subsidiary of Pierce Commercial Bank). Portmann paid Salsi 60 percent more than she made at her previous employer, and she became the primary underwriter of loans originated by Portmann. Salsi approved fraudulently generated loan applications despite the fact that they were filled with fraudulent documents. Salsi knew the files contained false statements and phony documents regarding the applicant’s employment, debts, current residence, and plans to reside in the home. Salsi’s sign-off meant the loans were approved and sold to other financial institutions and the FHA. After Portmann was fired at PC Bank Home Loans, Salsi followed him to two other mortgage companies. Personal Assistant Alice Lorraine Barney of Graham, Wash., was sentenced to two months in prison, four months of electronic home confinement, 100 hours of community service, and three years of supervised release. Barney was Portmann’s long-time assistant who created and inserted some of the false documents into loan files. Barney participated in submitting at least 60 fraudulent loan files. After Portmann was fired from PC Home Loans, Barney followed him to his three next employers. Pierce Commercial Vice President and Residential Lending Manager Sonja Lightfoot of Tacoma, Wash., was sentenced to one month in prison, four months of home confinement, 60 hours of community service, and three years of supervised release for her role in the conspiracy. Lightfoot joined the bank in 2002, before Portmann began his scheme. Between 2004 and 2009 it was Lightfoot’s job to lock the loans and sell them on the secondary market to other larger banks. Lightfoot knew that some of the loans contained false statements from borrowers but sold them anyway. When the fraud was discovered, the loans reverted back to Pierce Commercial Bank. The risk that additional loans would revert back to the bank ultimately forced the closure of the bank. “Mortgage fraud can turn the American Dream of homeownership into a nightmare for our communities. Law enforcement will not sit idly by when greed causes professionals to abandon their integrity and become fraudsters,” said Kenneth J. Hines, Special Agent in Charge of IRS-Criminal Investigation in the Pacific Northwest. From 2004 to 2008, Shawn Portmann closed almost $1 billion in loans, and he earned over $1.7 million per year. A review of a sample of conventional and FHA loans revealed that Portmann and his staff closed over 300 loans with false and fraudulent information. More than half of these loans have defaulted or otherwise caused loss to Pierce Commercial Bank, secondary investors, and/or the FHA, resulting in an estimated loss of $10 million.
Published
Jan 29, 2013
'A Long Road To Normal'

Nominated again to lead The Fed, Powell tells Senate committee to expect three rate hikes, but 'if we have to raise interest rates more over time, we will.'

Regulation and Compliance
Jan 11, 2022
CFPB: Complaint Response Worsens At Big 3 Credit Bureaus

Report claims Equifax, Experian, and TransUnion routinely failed to fully respond to consumers with errors.

Regulation and Compliance
Jan 10, 2022
The Fed Names Chairs, Deputy Chairs For 12 Reserve Banks

In recent years, the Federal Reserve System has worked to increase the overall diversity of the Reserve Bank and branch boards of directors and continues to build on those efforts.

Regulation and Compliance
Jan 06, 2022
The Fed: Rate Hike Likely Coming in June

Federal Open Market Committee's December minutes reveal discussion of first hike in federal funds rate in 2Q of 2022, as well as of ending asset purchases by March.

Regulation and Compliance
Jan 05, 2022
AARMR No Protection For Savanah Scares

Conference provides opportunity for regulators to interact, discuss common topics

Regulation and Compliance
Jan 04, 2022
McCargo Sworn In As Ginnie Mae President

Former HUD official becomes the first female to lead the Government National Mortgage Association.

Regulation and Compliance
Jan 04, 2022