Former Mortgage Broker Pleads Guilty in $1.6 Million Mortgage Fraud Scheme

admin —  June 29, 2009 — 1 Comment

Warren Clifton Pierce, a former mortgage broker operating as Integrity Mortgage, Inc. entered a guilty plea on Monday, June 1, 2009, in the U.S. District Court for the Southern District of Mississippi, to the crime of Conspiracy to Commit Mail Fraud and Wire Fraud for his role in a scheme to fraudulently obtain mortgage loans totaling approximately $1.6 Million from various out of state lenders. During his guilty plea, Pierce admitted his participation in fabricating documents and giving false information to lenders to fraudulently obtain residential mortgage loans for borrowers who did not qualify financially to receive the loans.

As previously reported on Mortgage Fraud Blog, Warren Clifton Pierce worked in the mortgage business in the metro-Jackson area for a number of years. During the time frame charged in the Indictment, Pierce did business as Raintree County Marketing Company, and as Integrity Mortgage as a mortgage broker. As a mortgage broker, Pierce sought out prospective borrowers and tried to qualify them financially to receive a home mortgage. Pierce would obtain basic financial and employment information from the borrower for a loan application. Pierce and his co-conspirators would then include false information on the application form to induce the lender to make the loan. Pierce and his coconspirators also prepared false documents to submit to lenders to support the false information contained on the loan application. These fabricated documents included false Verifications of Deposit, false Verifications of Rent, false forms to verify income, false W-2 forms, false tax returns, false money orders and false Social Security letters.

All of these fraudulent documents were either mailed or wired to lenders outside the state of Mississippi. The fraudulent loan application information and the fraudulent supporting documents caused the lender to believe the borrower had the ability to repay the mortgage loan and also created the appearance of a mortgage marketable as a security on the secondary market. Consequently, the false information and fabricated documents were significant in scheme to induce the lender to approve and fund the mortgage loan. Pierce received broker fees and commissions from those fraudulently obtained mortgage loan proceeds, which he shared with his co-conspirators.

Pierce is scheduled to be sentenced on August 25, 2009, at 9:00 a.m. at the federal courthouse in Natchez, MS. He faces a maximum sentence of 5 years in prison, a fine of up to $250,000.00 and forfeiture in the amount of $1.6 million.

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One response to Former Mortgage Broker Pleads Guilty in $1.6 Million Mortgage Fraud Scheme

  1. duhhhhhhhhhhhh

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