Michael D. Pahutski, Charlotte, North Carolina, filed a Notice of Intention to Change Plea on February 20, 2009, to change his plea from “not guilty” to “guilty”. According to media reports, Pahutski formalized his notice of intent and pled guilty to 21 charges for his role in a mortgage fraud scheme involving approximately $15 million.
As previously reported by Mortgage Fraud Blog, Victoria l. Sprouse, Charlotte, North Carolina, and Pahutski were charged in a Superceding Indictment with perjury, conspiracy to commit money laundering, mail, wire and bank fraud.
According to the Indictment, Sprouse, a licensed North Carolina real estate attorney, and Pahutski, a mortgage broker at Southland Mortgage Corporation, participated in a scheme from 2001 through September 2002, in Mecklenburg County, North Carolina, to obtain money and property by means of false and fraudulent pretenses, representations and artifices to defraud financial institutions of money and their right to honest services.
Specifically, Sprouse and Pahutski prepared materially false mortgage applications and supporting documents to submit to lenders for approval. The defendants also prepared and signed materially false HUD-1 settlement statements, appraisals and did accept down-payment checks from persons other than the buyers listed in the HUD-1 settlement statements.
The properties listed in the Indictment include:
1433 Jules Court;
2729 Sloan Drive;
7993-111 Shady Oak Trail; and
1909-25 Mereview Court; all of Mecklenburg County, North Carolina.