Marhsall Craig Scott, Jacksonville, Florida, was sentenced by Senior Judge Henry Lee Adams, Jr to 18 months imprisonment followed by 24 months supervised release after he was convicted of committing mail fraud, wire fraud, and conspiracy to commit mail fraud.
As previously reported by Mortgage Fraud Blog, Scott was one of four conspirators who schemed to defraud various lending institutions in connection with residential home mortgages. Scott, one of three owners of American Home Builders, Inc. (AHB), participated in a scheme to trick lending institutions into lending money to fund the purchases of new homes built by AHB. He and his co-conspirators did so by fraudulently inflating the price of homes on purchase and sale contracts in order to cause the lending institutions to lend more money on the homes than the true or actual price of the home. Evidence established that the “extra money” extended by the lending institutions was kicked-back to the borrower/buyer by both Scott, the home builder, and co-conspirator Jean Tan Jones, a real estate agent for the borrowers/buyers.
Testimony established that buyer/borrowers would be induced into purchasing the homes with the promise of receiving between $50,000 and $100,000 outside of closing, which was not disclosed to the lending institutions. Testimony further established that the vast majority of the homes are in foreclosure or short sale status.