HELOC Fraud Nets Atlanta Man Three Year Prison Sentence

Rachel Dollar —  October 2, 2017 — Leave a comment

Thomas Scott Brown, 47, Atlanta, Georgia, was sentenced to three years in prison, followed by five years of supervised release, for his role in a bank fraud scheme that resulted in losses of approximately $2.7 million. Brown pled guilty to bank fraud and false statements to a financial institution on June 9, 2017. According to court documents, from approximately 2006 through 2007, Brown purchased properties for buyers with his own money and then directed those individuals to apply for home equity loans with Navy Federal Credit Union, claiming that they owned the properties free and clear of any liens when, in fact, they still owed Brown for the properties. In applying for these home equity loans, Brown instructed the buyers to submit false documentation to the bank, including fraudulent Housing and Urban Development Settlement Statements and false membership applications. Brown further ordered these individuals to pay him from the proceeds of the home equity loans.

In most instances, the homes went into foreclosure after the bank approved the loans. In total, 51 properties Brown sold eventually went into foreclosure, causing Navy Federal Credit Union losses of $2.7 million.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Jamar K. Walker prosecuted the case.

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Rachel Dollar

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