Alois Craig Weingart, 60, Castle Rock, Colorado, was sentenced to 30 months in prison for his role in mortgage fraud scheme with losses to lenders totaling $12 million.
The defendant was sentenced on November 8, 2013. He pled guilty on April 8, 2013, to one count of making a false statement to a bank.
In the same case, Waunita Weingart pled guilty to two counts of wire fraud and John Gallegos pled guilty to one count of making a false statement to a bank.
According to the stipulated facts contained in Waunita Weingart’s plea agreement, beginning in 2000 and continuing through 2008, she devised a scheme to defraud lenders that funded residential mortgage loans. She was an experienced mortgage broker, settlement agent, and licensed title insurance producer. Alois Craig Weingart is her husband; John Gallegos is her son.
As part of her scheme, she, John Gallegos, and Craig Weingart each repeatedly obtained mortgage loans for their properties in Castle Rock and Boulder, Colorado, pledging the same properties again and again as collateral to each successive lender without paying off the prior loans. Waunita Weingart used her mortgage brokerage, G-4 Holding, as well as two escrow/title companies she controlled, Colorado County and Community Title and Real Estate Title, to facilitate her fraud.
For each new loan, Waunita Weingart made it appear as though the lender would obtain a first priority security interest in the property, knowing that it would not. In preparing the loan applications and providing information to the lenders for the applications, she incorporated false representations as necessary to assure that the borrowers would qualify for the loans. Each application substantially overstated the borrower’s true income, falsely representing that he or she had high monthly earnings from employment at another company Waunita Weingart controlled. Each application also falsely represented that the borrower owned numerous properties that he or she did not in fact own. As a result of her scheme, lenders lost over 12 million dollars.
Alois Craig Weingart pled guilty to making a false statement to obtain loans for his Castle Rock property; John Gallegos pled guilty to making a false statement to obtain a loan for another property he owned in Seattle, Washington.
