Robert Daniel Kelly, 48, Branford, Connecticut, pleaded guilty before United States Magistrate Judge Holly B. Fitzsimmons in Bridgeport, Connecitcut, to two counts of filing a false loan application in connection with a mortgage on property in South Carolina.
According to court documents and statements made in court, Kelly applied for and received several loans for the purchase and refinance of homes in the Myrtle Beach, South Carolina.
In pleading guilty to two counts of filing a false loan application, Kelly admitted that, in September 2007, he applied for and received mortgage loans from Bank of America on two properties located on Havens Drive, North Myrtle Beach, South Carolina. These applications contained misstatements, including that Kelly‘s income exceeded $83,000 a month when, in fact, his income was a fraction of that amount. Bank of America subsequently foreclosed on both properties and suffered losses of several hundred thousand dollars.
Kelly is scheduled to be sentenced by U.S. District Judge Janet C. Hall on December 19, 2011, at which time Kelly faces a maximum term of imprisonment of 30 years and a fine of up to $1 million. Kelly also faces an order of restitution in the amount of at least $959,002.03 to Bank of America and another lender who was victimized by this scheme.
Kelly was originally charged in an indictment that was returned by a federal grand jury in the District of South Carolina on January 25, 2011. The case has been transferred to the District of Connecticut for further prosecution.
David B. Fein, United States Attorney for the District of Connecticut, announced the guilty plea.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney David T. Huang.
In July 2009, the U.S. Attorney’s Office and the Federal Bureau of Investigation announced the formation of the Connecticut Mortgage Fraud Task Force to investigate and prosecute mortgage fraud cases and related financial crimes occurring in Connecticut. Citizens are encouraged to report any suspected mortgage fraud activity by calling 203-333-3512 and requesting the Connecticut Mortgage Fraud Task Force, or by sending an email to firstname.lastname@example.org.
The Connecticut Mortgage Fraud Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service ““ Criminal Investigation; U.S. Postal Inspection Service; U.S. Department of Housing and Urban Development, Office of Inspector General; Federal Deposit Insurance Corporation, Office of Inspector General, and State of Connecticut Department of Banking.
To report financial fraud crimes, and to learn more about the President’s Financial Fraud Enforcement Task Force, please visit www.stopfraud.gov.