Tuesday, April 29, 2008
Former City Housing Director Sentenced For Straw Borrower Scheme
Matthew Price II, the former Director of Housing and Economic Development for Florida City, Florida, was sentenced to 30 months imprisonment, to be followed by three years of supervised release, for his role in a conspiracy to commit mail and wire fraud that deprived the citizens of Florida City of his honest services. Co-defendant Jennifer Stimpson was sentenced to six months imprisonment, to be followed by 6 months of home confinement and 3 years of supervised release, for her role in the fraud. The defendants had been indicted by a federal grand jury on charges of conspiracy to commit mail and wire fraud, in violation of Title 18, U.S.C. Section 1349, as well as substantive mail and wire fraud violations, in violation of Title 18, U.S.C. Sections 1341, 1343, and 1346.
During the plea hearing, Price admitted that he conspired to obtain a mortgage for Price‘s personal residence when Price could not qualify for financing, using a straw purchaser who was a Florida City employee. The scheme also included efforts to use Price‘s official position as Director of Housing and Economic Development to reward Stimpson and the straw purchaser for their assistance, by selling Florida City property to Stimpson‘s family at a depressed price, allowing for its re-sale at a substantial profit, and by providing affordable housing and grant money to the straw purchaser who did not qualify for those benefits. Price acknowledged funding the straw purchase of his home with funds from a contractor doing business with Florida City who was also the recipient of grant money received through Florida City.
mortgage fraud
Sounds like the city employee just couldn’t reists taking a little off the top. The perception of the federal government being corrupt is dwarfed by what goes on in the municiple level.
Posted by on 04/29 at 09:00 AM
That is really sad. We look to these people for help and direction. To find out they are contributing to the problem.
Posted by on 04/29 at 06:30 PM
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Rachel Dollar is an attorney and Certified Mortgage Banker who handles fraud recovery litigation for lenders and secondary market investors nationwide. She is a nationally recognized speaker on the topic of mortgage fraud. Ms. Dollar is licensed to practice law in California and maintains offices in Santa Rosa, California. 
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