Mortgage Broker Sentenced In Scheme To Defraud Lenders

Allison Tussey —  October 26, 2009 — 2 Comments

Sidney Okosun, 41, a Nigerian national residing in Washington, D.C., was sentenced by U.S. District Judge Alexander Williams, Jr. to 18 months in prison followed by five years of supervised release for bank fraud in connection with a scheme to defraud mortgage lenders. Judge Williams also ordered Okosun to pay restitution of $2,165,191. Okosun was formerly licensed as a mortgage originator by the State of Maryland.

According to Okosun‘s plea agreement, Okosun, a loan officer employed at a mortgage-broker business, conspired with others to purchase properties from a company owned by co-defendant Oladipo Olafunmiloye. Conspirators sought mortgages and refinance loans in order to purchase the properties without having to identify Olafunmiloye‘s ownership interest in the properties. To that end, the defendants recruited individuals to act as purchasers of the target properties, when in fact, these “straw buyers” owned these properties in name only and made almost none of the payments related to the purchase of the target properties. Olafunmiloye was responsible for making all payments associated with the purchase of the properties, including the down payments, closing costs and mortgage payments. Once the purchase of the properties had been funded, Olafunmiloye caused the straw buyers to default on their mortgage payments. As a result, the lenders were forced to foreclose on those properties and incur losses.

Okosun acted as a mortgage broker. He coordinated the submission of fraudulent loan applications and other documents to lenders and brokered the resulting fraudulent loans. He received a commission for each fraudulent transaction he brokered, including $33,000 for nine transactions he brokered from November, 2005 to September, 2006. The estimated loss to mortgage lenders that resulted from the nine transactions currently totals $2,165,191.

Oladipo Olafunmiloye, 40, of Gambrills, Maryland, pleaded guilty and was sentenced to 46 months in prison for bank fraud and money laundering in connection with the scheme, and was ordered to pay $3 million in restitution. Oyekunle Ikudayisi, 41, White Plains, Maryland, was sentenced to 6 months in prison and 6 months home detention with electronic monitoring and ordered to pay restitution of $812,438 for conspiring to make a false statement in connection with the scheme. Kolawole Aminu, 46, a Nigerian national, pleaded guilty to conspiracy and was sentenced to 3 years probation and ordered to pay $161,064 in restitution.

United States Attorney Rod J. Rosenstein announced the sentencing and thanked the U.S. Secret Service and the Internal Revenue Service – Criminal Investigation for their investigative work. Mr. Rosenstein commended Assistant United States Attorneys Robert K. Hur and James A. Crowell IV, who prosecuted the case.

Allison Tussey

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2 responses to Mortgage Broker Sentenced In Scheme To Defraud Lenders

  1. Why on God’s green earth would the state of Maryland issue a broker license to a Nigerian national? I’m sure the state was not able to affirmatively establish this tool’s prior criminal record in his home country of Nigeria. If the state of Maryland will hold an American accountable for prior crimes in their home country, they should do the same for Nigerian applicants. If they are not able to search Nigerian criminal records, then Nigerians should not be eligible for a broker’s license.

  2. This is where the problems start. Hangen High.

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