Mortgage Fraud: Different Types of Charges | O’Mara Law Group (2024)

If someone is charged with Mortgage Fraud, they are going to fall under one of three categories for fraud. Whether they played the main role and acted solely on their behalf, or played a partial role as part of a larger scheme, the criminal charges and sentencing vary widely if there is a conviction. It is essential that no matter what role was played, you seek experienced and proficient representation.Criminal defense attorneys in Orlandoat the O’Mara Law Group have extensive experience in Criminal Trial Law with Mark O’Mara, a legal analyst for CNN and founder of Justice Outreach.

Fraud for Profit-Fraud for Profit is also known as “Industry Insider Fraud.” This type of mortgage fraud is rated by Freddie Mac as the most costly mortgage fraud committed. This is typically committed by a group of people playing multiple roles in a large scheme. This type of fraud requires numerous fraudulent transactions. Many involved in this type of fraud could range from the realtor, mortgage broker, loan officers, and home seller (Freddie Mac, 2016). This large scale fraud takes coordination to pull it off, and every role is an important one. Don’t think for a second that the larger the group in the party the less severe individual charges will be. In Anchorage in 2009, a real estate investor that played a role in a scheme was one of nine charged; he was sentenced to 70 months in prison and pled to 64 counts in addition he was ordered to pay $2.5 million in restitution (FBI.gov, 2009). In 2007, 31 people were charged in one scheme (FBI.gov, 2010).

Fraud for Criminal Enterprise-This type of fraud is traditionally committed with some involvement in criminal organizations. This type of scheme involves the process of laundering funds in means of buying properties with “dirty” money, money that was obtained through criminal activity of any kind and turning around and selling them. Usually, there is more than one key player; however, it does not require many; under most state laws a conspiracy can exist with as little as two people involved.. While there are variations to the schemes played out in this type of Mortgage Fraud, the most common is by ways of property flipping for the purpose of laundering illegal funds (Freddie Mac, 2016).

Fraud for Housing/Property-The most common mortgage fraud charge is Fraud for Housing or Property. Unfortunately, this crime is rarely thought of as a serious crime by those that commit it. This is traditionally a single act crime, usually benefitting one person or family. The most common scheme in this fraudulent act is when a borrower falsifies information and/or documents. Falsifying information on mortgage loan applications, such as employment, assets, or income is a federal offense. If there have not been any charges filed and you feel the need for obtaining legal representation inOrlando mortgage fraud lawyerMark O’Mara of the O’Mara Law Group can advise you what the next step should be. Know this; while it is the most common mortgage fraud committed, and many go undetected, it is not taken lightly in a court of law. In 2007, a woman was sentenced to 37 months in prison by a Federal court of law for committing fraud for housing (Freddie Mac, 2016). This type of mortgage fraud is not always intentional and the range of consequences varies state by state. If you feel as though you may have committed an accidental crime, it is best to consult with a professional proactively.