Judge Hands Down Hefty Sentence to Mortgage Fraudster

Allison Tussey —  April 11, 2014 — 2 Comments

Jabari L. Marshall, 36, Las Vegas, Nevada, who was convicted by a jury in September 2013 of conspiracy to commit mail and wire fraud for his involvement in a scheme to obtain $35 million in fraudulent mortgage loans, was sentenced to 20 years in prison.

The defendant was sentenced by U.S. District Judge Gloria M. Navarro. Marshall was also ordered to pay approximately $250,000 in restitution and to forfeit up to $6.1 million in assets that were gained as a result of the crimes. Marshall has been in custody since his arrest in January 2012, and has a lengthy criminal history, including two prior federal convictions in Nevada for bank fraud/check fraud type crimes. Marshall was also on federal supervised release when he committed this crime.

From about 2005 to 2007, Marshall and nine co-conspirators obtained mortgage loans through the use of straw buyers and by submitting false and fraudulent loan applications to federally insured financial institutions. Once the mortgage loans were approved, the conspirators caused money from the loan transactions to be disbursed to their own use and benefit. The conspirators typically rented the homes and re-sold them for a profit, using the same scheme. Some of the homes were flipped or sold twice within short periods of time. The conspirators then defaulted on the loans, causing approximately $15 million in losses to the lenders. The conspirators used this fraudulent scheme to purchase 30 homes in Las Vegas between 2005 and 2007. The total value of the mortgages was approximately $35 million.

Defendant Lloyd Gardley was considered to be the leader of the conspiracy. Lloyd Gardley, Candis Gardley, and Marshall recruited straw buyers, loan officers and others into the scheme. Marshall also provided false Social Security numbers and false documents for some of the loans. The other conspirators included two loan officers, two real estate agents, an escrow assistant, an accountant, and an individual who provided false verifications of rent. All nine co-conspirators were convicted and have been sentenced.

Daniel G. Bogden, United States Attorney for the District of Nevada, announced the sentence.

The case was investigated by the United States Postal Inspection Service and prosecuted by Assistant U.S. Attorneys Brian Pugh and Sarah E. Griswold.

“Since 2008, hundreds of persons have been prosecuted by the Nevada United States Attorney’s Office for this type of crime,” said U.S. Attorney Bogden. “By now, the message should be clear that if you get convicted of committing a mortgage fraud offense, you will spend a significant time in federal prison.”

Allison Tussey

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2 responses to Judge Hands Down Hefty Sentence to Mortgage Fraudster

  1. There are many honest people in the industry, and there has been fraud in this industry for a long time. I have worked in the industry since 1969, and have seen many phases.

    I have “lost” a few jobs due to my determination to be honest, but I slept better.

    The “culture” you refer to is not only certain people in and around the industry, the general public have also added to the fraud.. How could they recruit “straw borrowers”? And all the “liar” loans? Maybe a RE agent or loan officer advised them to overstate income,(because “everyone was doing it”) but the disclosure on the loan application clearly states to make false statements is a violation.

    Recently, there has been more fraud. I declined a loan once, and the borrower resubmitted with an entirely new tax return.. When I brought it to the attention of the client I was working for, they told me to ignore. Like I said, honest people in the industry get overridden by even their managers. Why? The mortgage brokers and borrowers complain.

    Don’t be so quick to blame the “industry”… the general public had a hand in it too.

  2. They’ll have to jail the entire industry to stop it. It’s a culture.

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