Nehemiah Jamal Douglas, 28, Houston, Texas, has pleaded guilty to mail and wire fraud conspiracy and money laundering charges. Douglas admitted to conspiring with others to defraud residential mortgage lenders by misstating facts relevant to the lending decisions.
Douglas worked as a loan officer at two Houston area mortgage broker firms, Motown Mortgage Group and Central Capital Financial Group, where fraudulent loan applications and other fraudulent documents were prepared to induce mortgage lenders to provide 100% financing for homes the borrower’s falsely claimed were to be their primary residences. Douglas himself purchased five homes using false and fraudulent information concerning his assets and liabilities and he recruited others to do the same.
A conviction for conspiracy to commit wire and mail fraud carries a possible maximum penalty of up to 20 years imprisonment and up to $250,000 fine. A conviction for conspiracy to commit money laundering through financial transactions involving criminally derived funds carries a possible maximum penalty of up to 10 years and a fine up to $250,000 or twice the amount laundered whichever is greater.
Sentencing has been set for Oct. 26, 2009.
United States Attorney Tim Johnson made the announcement. The criminal charges are the result of a joint investigation being conducted by agents of the FBI and the Internal Revenue Service – Criminal Investigations. The case is being prosecuted by Assistant United States Attorney Melissa Annis.