Tuesday, January 11, 2011

Maryland mortgage broker pleads guilty to loan fraud

In exchange for considerations; a Maryland broker of mortgages has accepted guilt in fraud charges. The U.S. Attorney’s office has brought these charges. These charges are in relationship with multiple deceitful loans and mortgages. This can be a great example of why you should exercise caution when applying for payday loans and mortgages. Be sure you take a look at the loan provider thoroughly. Article source – Maryland mortgage broker pleads guilty to loan fraud by MoneyBlogNewz.

Maryland mortgage fraud

Douglas Skibicki, a Maryland mortgage broker, has pleaded guilty to several counts of mail fraud. Skibicki has admitted that he "participated in a scheme to defraud lenders, family members, and banks." He applied for and received multiple mortgages and helped others receive mortgages under entirely fraudulent circumstances. In several cases, Skibicki worked with an appraiser that provided fraudulent appraisals, often of empty lots.

Bad for families to have installment loans taken out

Families and businesses were supposed to be getting the Maryland installment loans Skibicki brokered. In order to refinance mortgages and get more financing, many of the loans were taken out on properties. Empty lots would end up getting loans. Some would have minimal structures there. The homes were said to be three and four bedroom in size worth hundreds of thousands of dollars according to the appraisals. Skibicki got loans for families that they couldn't realistically pay back. The mortgage lenders and banks got false documentation.

How mortgage fraud ends up being punished

Skibicki is charged with mail fraud even though millions of dollars were lost with the mortgage fraud. There was also a cease and desist order that Skibicki will have to deal with. The short-term loan, mortgage and financial industry will never be seeing Skibicki again. Because Skibicki mailed the mortgage forms to lenders, the mail fraud charge is more severe. Sentencing is scheduled for April of this year, and he could be facing up to 20 years in prison, in addition to forfeiting $1.4 million in property and gains, as well as being fined twice the amount of ill-gotten gains.

Articles cited

Loan Safe


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