Q: Was Joy Johnson convicted of mortgage fraud? She was from Vacaville.
A: Joy Johnson of Vacaville was one of nine people indicted in July 2008 in connection with a mortgage fraud scheme involving the purchase of 13 real estate properties in Solano County in 2006.
According to federal court records, Johnson pleaded guilty in December 2011 to one count of money laundering and was sentenced to 55 months in prison. Johnson, now 40 years old, is scheduled for release in March 2016.
The scheme reportedly involved purchasing properties at prices substantially higher than the list price without the lender’s knowledge. The difference between the list price and the inflated sale price was then credited at the close of escrow to fictitious businesses controlled by the defendants and others. The defendants and others allegedly used the credited funds mainly to make mortgage payments on the properties and their own living expenses.
Loan applications also allegedly contained false information about the income, personal assets and the intent to occupy the property as a primary residence. At the time the indictment was issued, most of the loans secured by the properties had been foreclosed upon or were in default, authorities said.