Resulted in Over $850,000 in Loss to Banks
GREENBELT, Md. (May 13, 2010)—D’Von Massey, age 37, of Waldorf, pleaded guilty Wednesday 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 Massey’s plea agreement, between June 2007 and September 2007 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 his primary residence; he had substantial rental income; another individual rented other property he owned; and that individual had provided a cashier’s check for a security deposit on the rental property. 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.
Massey faces a maximum sentence of 30 years in prison and a $1 million fine. U.S. District Judge Alexander Williams, Jr. scheduled his sentencing for September 20, 2010 at 9:30 a.m.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available http://www.justice.gov/usao/md/Mortgage-Fraud/.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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