Man Sentenced for His Role in a $6.9M Mortgage Fraud Scheme

Allison Tussey —  December 2, 2011 — 1 Comment

Chris Malcom, Tampa, Florida, was sentenced by United States District Judge Susan C. Bucklew to 51 months in federal prison, 5 years supervised release and restitution in the amount of $6,886,645 for his role in a $6.9 million-mortgage fraud scheme.

On November 2, 2010, Malcom was charged via criminal information with one count of conspiracy to commit wire fraud; he pleaded guilty to the charge the same day. 

According to Malcom‘s plea agreement, which was entered on November 2, 2010, Malcom conspired with others to locate straw buyers and suitable properties from which equity could be stripped.  The conspirators also found ways to create artificial equity by inflating purchase prices and then diverting the equity to themselves usually through payoffs on the HUD-1.

Malcom must surrender to serve his prison sentence on or after January 15, 2012. 

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Allison Tussey

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One response to Man Sentenced for His Role in a $6.9M Mortgage Fraud Scheme

  1. The fact is that straw purchases were previously unregulated and the title company’s let check be cut to anyone in the world. Title companies listed sellers as the owners in their commitments when they did not even own the property. Until now, the only punishment was that the title agent would lose their underwriter..

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