Broker Goes to Jail for Scheme Involving Straw Buyers

Allison Tussey —  January 31, 2012 — Leave a comment

Marlon Baugh, 32, Pembroke Pines, Florida, was sentenced on Friday, January 27, 2012, by U.S. District Judge James Cohn to one year and one day in prison for mail fraud in connection with his participation in a mortgage fraud scheme.  The defendant previously had pled guilty to one count of mail fraud, in violation of Title 18, United States Code, Section 1341.

According to information presented in court, defendant Baugh was a mortgage broker licensed by the State of Florida’s Office of Financial Regulation.  Baugh was a partner at National Foreclosure Center, which was in the business of completing loan modifications for homes that were in foreclosure or about to go into foreclosure.  Baugh and others engaged in a scheme to enrich themselves by fraudulently causing real estate to be bought and sold through straw buyers. 

Baugh and others falsified the Uniform Residential Loan Applications that were submitted on behalf of the straw buyers in order to fraudulently qualify the straw buyers for mortgages.  Baugh also submitted false employment verification letters to support the false information on the loan application.

Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, John V. Gillies, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Tom Grady, Commissioner, State of Florida’s Office of Financial Regulation, announced the sentencing of defendant.

Mr. Ferrer commended the investigative efforts of the FBI and Florida’s Office of Financial Regulation.  This case is being prosecuted by Assistant U.S. Attorney Laurence Bardfeld. 

Allison Tussey

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