Friday, June 23, 2006

Loan Processor Indicted for Accepting Bribes to Approve False Loan Applications

Marcus Wiseman, 35, Bethesda, Maryland, was indicted by a federal grand jury in Pittsburgh, Pennsylvania on ten counts of Conspiracy, Wire Fraud, and Accepting Bribes by an Employee of a Financial Institution.

According to Indictment presented to the Court, Wiseman, while employed at two different financial institutions, processed and approved loans for two other individuals when he knew that the loan applications contained false representations. In addition, the indictment alleges that Wiseman accepted payments from those two individuals related to the processing of these fraudulent loans.

According to the indictment, two individuals identified only as RH and JM, applied for loans through Guaranty Residential Lending Corporation and Accubank.  They provided false documents in connection with the loans, including false appraisals that materially overstated the values of the properties and false income documents, such as W-2’s, that grossly overstated the borrower’s income. 

Wiseman was an employee of Guaranty Residential Lending Corporation and later of National City Mortgage (parent of Accubank).  He processed and approved the loans knowing that the loan packages contained material misrepresentations.  Wiseman was paid by RH and JM for processing and approving the fraudulent loan packages.

The indictment alleges that on or about February 25, 2002, Wiseman signed an underwriting disposition with respect to property located at 7234-36 Thomas Boulevard, Pittsburgh, Pennsylania.  Public records reflect that the property was purchased by Jeffrey L. Martin from HUD on 8/9/01 for $26,900 and then sold the property to Loretta Martin on 2/23/02 for $245,000.  The transaction is identified as an intra-family transaction. 

The indictment also references five separate payments to Wiseman, totaling $35,000, for processing fraudulent loan applications.

On November 18, 2005, the US Attorney for the Western District of Pennsylvania charged Jeffrey Martin with five counts of wire fraud by Information and, on February 15, 2006, Raymon Harris was charged with three counts of wire fraud by Information, both in connection with some of the same transactions underlying the Wiseman indictment.  In those informations, the government alleges that Martin and Harris, provided false information in connection with obtaining loans.  Martin plead guilty on November 30, 2005 and Harris plead guilty on March 7, 2006.  Both are currently scheduled to be sentenced on September 7, 2006.

The Wiseman indictment refers to the following properties:

34 Kenny Way, Pittsburgh, Pennsylvania

7770 Thon Drive, Pittsburgh, Pennsylvania

519 Wallace Avenue, Pittsburgh, Pennsylvania

7419 Race Street, Pittsburgh, Pennsylvania

Also identified in the Thomas information are properties located at 290 Hansell Street, Pittsburgh, Pennsylvania and 4924 Dearborn Street, Pittsburgh, Pennsylvania.

Also identified in the Harris information is a property located at 3504 Shadeland, Pittsburgh, Pennsylvania.

Assistant United States Attorney Brendan T. Conway, who presented the case to the grand jury, indicated that the law provides for a maximum total sentence of two hundred and seventy-five years in prison, a fine of $9,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

mortgage fraud