Resulted in Over $850,000 in Loss to Banks
GREENBELT, Md. (May 28, 2010) - Melva Massey, age 29, of Waldorf, pleaded guilty on May 21 to conspiring to commit wire fraud in connection with making false statements to obtain three home mortgages within a three month period.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Inspector General for Investigations Harvey Witherspoon of the Board of Governors of the Federal Reserve System - Office of Inspector General; and Special Agent in Charge Richard A. McFeely of the Federal Bureau of Investigation.
According to Masseys plea agreement, between June 2007 and September 2007 Melva Massey, her husband DVon Massey and others submitted three mortgage applications for three properties in Washington, D.C. to different banks which falsely stated: each property was to be the Masseys primary residence; the Masseys had substantial rental income; another individual rented other property owned by the Masseys; and that individual had provided Melva Massey a cashiers check for a security deposit on the rental property. Melva Massey knew that banks reviewed income and assets to help determine whether to approve mortgage loans. The three banks approved the mortgage loans in the total amount of $1,205,267.
Each of the three properties went into foreclosure or short sale, resulting in a total loss to the banks of $859,190.
Melva Massey faces a maximum sentence of 30 years in prison and a $1 million fine. U.S. District Judge Alexander Williams, Jr. scheduled her sentencing for September 13, 2010 at 9:30 a.m.
DVon Massey, age 37, of Waldorf, Maryland pleaded guilty to the conspiracy on May 11, 2010 and is scheduled to be sentenced on September 20, 2010 at 9:30.
United States Attorney Rod J. Rosenstein thanked Assistant U.S. Attorneys Jonathan C. Su and Adam K. Ake, who are prosecuting the case.
Source: Office of the United States Attorney for the District of Maryland