A Missouri City, Texas couple — one a former NASA technical manager, the other a NASA contractor — have admitted to orchestrating a fraudulent mortgage financing and refinancing scheme that stretched across several years, according to the U.S. Attorney’s Office for the Southern District of Texas.
Noreen Khan, 52, and her husband Christopher Mayberry, 53, pleaded guilty to one count of conspiracy for making false statements to loan businesses tied to multiple mortgages they financed between 2017 and 2021. Prosecutors said the couple provided lenders with fabricated pay stubs, tax forms, and bank account statements to secure and refinance loans on their luxury home.
Court documents show the pair initially took out large personal loans to buy the property in 2016, before quickly defaulting. When creditors pursued repayment, Khan falsely claimed identity theft — filing a fake police report, submitting a false complaint to the Federal Trade Commission, and sending misleading letters to credit bureaus.
Despite those defaults, the couple went on to sign three separate mortgage agreements, repeatedly misrepresenting their employment and income in order to qualify.
Consequences
Khan and Mayberry now face up to five years in federal prison and fines of up to $250,000. They must also pay $276,709 in restitution before their sentencing, scheduled for Dec. 18 before U.S. District Judge Charles Eskridge. Prosecutors noted that NASA’s Office of Inspector General conducted the investigation, underscoring the seriousness of the case.
Why It Matters For LOs And Brokers
Mortgage fraud schemes remain relatively rare, but the risks to lenders — and the professionals who touch those files — are real.
For loan officers and brokers, the case is a reminder that regulators and investors are watching closely, and fraudulent documentation can slip through if guardrails aren’t followed.
Red Flags To Watch For
- Inconsistent or unverifiable income records: Documents that don’t align with IRS or third-party verification.
- Unusual borrower behavior: Aggressively disputing debts or claiming identity theft without credible evidence.
- Multiple financing attempts: Repeat refinances or applications on the same property within a short span.
- High-value property paired with shaky documentation: A mismatch between luxury home purchases and financial profile.
What’s Next
Sentencing is set for Dec. 18. Beyond this individual case, brokers and LOs should expect continued vigilance from federal investigators, especially as affordability strains tempt some borrowers to cut corners.
Staying alert to red flags not only protects lenders, but also safeguards the long-term trust that underpins the mortgage industry.
