Lawrence A. Luckett, 52, Chicago, Illinois, formerly chief executive officer and 25 percent owner of the former Home Mortgage, Inc., Burr Ridge, Illinois, was charged with bank fraud in a criminal information. Luckett will be ordered to appear for arraignment in U.S. District Court.
According to the charges, Home Mortgage funded loans it made by borrowing money from other lenders. After issuing a mortgage, Home Mortgage sold the loan to a third party, typically a financial institution that invested in mortgages, and used the proceeds from the sale of the loan to repay its lender. Between August 2007 and March 2008, Luckett and an employee he directed allegedly submitted requests to GMAC Bank and an affiliated lender for more than 450 fictitious residential mortgage loans, causing GMAC a loss in excess of $15 million.
As part of the scheme, Luckett and his employee allegedly fabricated and submitted to GMAC documents relating to borrowers, biographical and property information for non-existent loans purportedly to be made by Home Mortgage. Instead of using the money advanced by GMAC to fund loans, Luckett allegedly used the money to continue operations of Home Mortgage and to pay various personal expenses.
The charges also seek forfeiture of $15 million. If convicted, bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine.
The Government is being represented by Assistant U.S. Attorney David Glockner.