Fraudster Receives 8 Year Sentence for Appraisal Fraud

Allison Tussey —  May 21, 2012 — 5 Comments

Anthony Jerdine, 41, Pepper Pike, Ohio, was sentenced to 105 months in prison after previously being found guilty of bank fraud.

Jerdine pleaded guilty in February 2011, to numerous charges, including conspiracy to commit bank fraud and money laundering, bank fraud and multiple counts of money laundering.

As previously reported by Mortgage Fraud Blog, Jerdine and several codefendants conspired in 2007 to purchase the home at 7261 Hillbrook Lane, South Russell, Ohio. Jerdine purchased the property on Aug. 31, 2007 through a land trust agreement for $710,000 then “resold” it the same day for $2 million to co-defendant Terry Smith based on a fraudulent appraisal, according to court records.

Other co-defendants furthered the conspiracy by completing and submitting a fraudulent loan application which falsified Smith‘s employment, income, assets, source of down-payment funds, according to court records.

The defendants did all this to deceive and defraud Washington Mutual Bank into funding the $2 million purchase price with a mortgage loan of more than $1.5 million, according to court documents.

U.S. District Judge Donald Nugent also ordered Jerdine to pay restitution of more than $1.3 million.

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced the sentence.

This case is being prosecuted by Assistant United States Attorney Mark S. Bennett following an investigation by the Federal Bureau of Investigation and U.S. Postal Inspection Service.

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Allison Tussey

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5 responses to Fraudster Receives 8 Year Sentence for Appraisal Fraud

  1. Don’t bother. They aren’t posting any comments that don’t support the headline.

  2. What I found was the people that sat in our Appraisal ethics classes and derided the notion that you should act ethically and give an unbiased opinion of value and NOT enable mortgage brokers to juice the system…were the EXACT same appraisers that got nearly 100% of the work from the same brokers who today would love to blame appraisers for fraudulent deals like this.

    The truth is, these schemes were thought up and hatched at a loan officer’s desk and they had a Rolodex of a select few appraisers who they could count on to commit fraud. They were called “reasonable” at the time…today they call them criminals.

    If you find mortgage fraud in 80% of your deals, you used the same appraiser over and over to facilitate it.

    Remember there is a difference between the accomplice and the mastermind.

    While honest appraisers starved during the largest boom in real estate history…”team players” were buying 3rd and 4th houses to store all their Harleys in.

    This is ridiculous. The most common behavior of the day was the no doc, total Bulls$%#it loan. But, it isn’t lying if nobody is going to check behind you, right?

  3. Response to Storm- Post some facts, something to support your opinion that is, thus far, based on nothing.

  4. Appraisal fraud was common, especially in 2005-07. The ones committing these mortgage fraud used the same appraiser over and over again, especially in flipping the homes right away to heighten the price of the homes. Back then there was no regulations or rotation of appraisers. Most appraisers are honest hard working people but their is always a few “bad apples” that will go along with the idea because the money was good, the payoffs were good, and nobody thought they would get caught.

  5. as an appraiser, your statement is misleading- apparently in an effort to “drum” up business. you continually post this and I am tired of it and compelled to respond. What are you defining as “appraisal fraud”? and out of the total numbers of appraisals(not just those sent to your business – mortgage fraud examiners) performed in the US, what percentage of this is deemed “appraisal fraud”- by your definition?

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