Victoria l. Sprouse, 38, Charlotte, North Carolina, was found guilty by a jury of bank fraud and money laundering, among other crimes, after an eight day trial according to media reports. As previously reported by Mortgage Fraud Blog, Sprouse, was charged in a Superceding Indictment with perjury, conspiracy to commit money laundering, mail, wire and bank fraud.
According to the Indictment, Sprouse, a licensed North Carolina real estate attorney, and Michael D. Pahutski, a mortgage broker at Southland Mortgage Corporation, participated in a scheme from 2001 through September 2002, in Mecklenburg County, North Carolina, to obtain money and property by means of false and fraudulent pretenses, representations and artifices to defraud financial institutions of money and their right to honest services.
Specifically, Sprouse and Pahutski prepared materially false mortgage applications and supporting documents to submit to lenders for approval. The defendants also prepared and signed materially false HUD-1 settlement statements, appraisals and did accept down-payment checks from persons other than the buyers listed in the HUD-1 settlement statements.