Skip to main content

NC Man Gets Three Years for Filing False HUD-1 Settlement Statements

NationalMortgageProfessional.com
Apr 18, 2013

United States Attorney Thomas G. Walker has announced that in federal court before Chief United States District Judge James C. Dever, III, Jeffrey Scott Taggart, of Wilmington, N.C., was sentenced to a three-year term of imprisonment, followed by three years of supervised release, on charges of Conspiracy to Commit Mail, Wire, and Bank Fraud, in violation of Title 18, United States Code, Section 1349, and Subscribing to a False Income Tax Return, in violation of Title 26, United States Code, Section 7206(1). Taggart was also ordered to pay $3,060.896.77 to 12 banks and lenders who were victims of the fraud. With respect to the charge of Conspiracy to Commit Mail, Wire, and Bank Fraud, the indictment alleged that Taggart, in his capacity as a North Carolina attorney, prepared false HUD-1 settlement statements that he sent to banks and lenders on more than 50 loan transactions tied to the scheme. Taggart falsified the HUD-1 settlement statements in various ways, including the falsification of the existence and degree of the buyer’s down payment, the existence and degree of financing, the existence or non-existence of a buyer or seller, the actual contract price for the property, and the true recipient of all loan proceeds. Taggart also participated in the scheme by fronting money from his firm’s escrow account to assist borrowers to appear qualified for loans that he closed. As a result of the scheme, banks and lenders issued loans to the conspirators in the amount of approximately $15.8 million, which resulted in $3,060.896.77 in actual losses to the banks and lenders. With respect to the Charge of Subscribing to a False Income Tax Return, the indictment alleged that Taggart falsely listed his taxable income as $80,486, when in fact, his taxable income was $271,003. Investigation of this case was conducted by the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorney William M. Gilmore represented the United States.
Published
Apr 18, 2013
CFPB Names 4 To Key Senior Positions

The appointees include two who helped create the bureau and two who served on the CFPB staff during the Obama administration.

Regulation and Compliance
Oct 14, 2021
FHFA Raises Enterprises' Multifamily Loan Purchase Caps

The Federal Housing Finance Agency (FHFA) said the 2022 multifamily loan purchase caps will be $78 billion for each Enterprise, for a combined total of $156 billion to support the multifamily market.

Regulation and Compliance
Oct 13, 2021
CFPB Hits AAG With Complaint For Deceptive Marketing Of Reverse Mortgages

The Consumer Financial Protection Bureau filed a complaint and proposed consent order, which alleges that American Advisors Group (AAG) used inflated and deceptive home estimates to attract reverse mortgage consumers.

Regulation and Compliance
Oct 12, 2021
Waterstone Mortgage Names VP Of Compliance

Waterstone Mortgage Corporation named Kris Barros as the company's vice president of compliance.

Community
Oct 08, 2021
Battling The ‘Giant Purple Snorklewacker’

The confirmation of Rohit Chopra as CFPB director has the mortgage industry anxious, but former MBA CEO David Stevens offers some advice: follow the rules.

Regulation and Compliance
Oct 08, 2021
The Compliance Contradiction

Staunch compliance stances often lead to contradictory actions.

Regulation and Compliance
Oct 06, 2021