Sentencing, settlement announced in separate mortgage fraud cases

Published: Thursday, Nov. 14, 2013 - 12:00 am
Last Modified: Thursday, Nov. 14, 2013 - 8:05 am

A Redding man has been sentenced in federal court in Sacramento and a San Diego County loan processing firm has agreed to a civil settlement in separate mortgage fraud cases.

U.S. District Judge William B. Shubb today sentenced Brandon Hanly, 33, of Redding to four years in prison, according to a federal Department of Justice news release.

From September 2005 to April 2006, Hanly and others participated in a scheme to defraud lenders, according to evidence presented at Hanly’s trial. To obtain loans and cash above the true value of a house, they provided the lender with inflated appraisals and title reports with fake liens in the name of a shell company, TPG Investments Inc. The defendants then gave the lender and escrow officer instructions to pay off the lien to TPG.

Hanly testified that he was a victim of the scheme, but authorities said evidence showed that he personally received more than $300,000 as a result of his participation.

Judge Shubb found that Hanly had committed perjury in his trial and increased the sentence to “send a message to people who would commit this crime and who would lie about it when they come to court,” according to a written statement.

In the second case, also in U.S. District Court in Sacramento, U.S. Attorney Benjamin B. Wagner announced that the United States has settled an investigation against Encinitas-based loan processor Loan Tech Inc. and its president, Emily Kay-Eddie, seeking damages and civil penalties for a 2008-2009 mortgage fraud scheme that caused losses to the Federal Housing Administration. The homes involved were in Sacramento, West Sacramento and Williams.

Kaye-Eddie and the now-defunct Loan Tech processed and submitted applications for FHA-insured mortgage loans that included false statements, including fraudulent rental agreements falsely stating, unbeknownst to the borrowers, that the borrowers were receiving rental income when they were not, according to a Department of Justice news release. Without the falsely documented rental income, the borrowers would not have qualified for FHA-insured loans, authorities said.

All but one of the loans have been delinquent at some point, and two of the homes have gone into foreclosure, authorities said.

Under the settlement, Loan Tech and Kaye-Eddie have agreed to pay $75,000 to settle the dispute and to a 10-year exclusion from participating in the origination of loans secured by FHA or HUD. The defendants deny liability.

The case resulted form an investigation by HUD’s Office of Inspector General.


Call The Bee’s Cathy Locke, (916) 321-5287.

Read more articles by Cathy Locke



Sacramento Bee Job listing powered by Careerbuilder.com
Quick Job Search
Sacramento Bee Jobs »
Buy
Used Cars
Dealer and private-party ads
Make:

Model:

Price Range:
to
Search within:
miles of ZIP

Advanced Search | 1982 & Older

TODAY'S CIRCULARS