Mortgage Executive Pleads Guilty to Mortgage and Wire Fraud Charges

admin —  May 13, 2009 — 5 Comments

Stacy Lynn Chamberlain, 42, Unionville, Virginia, has pled guilty to one count of mortgage fraud and one count of wire fraud. She is facing a maximum exposure of 50 years in prison and $1,250,000 in fines when she is sentenced on July 28, 2009 by United States District Judge Richard L. Williams.

According to court documents, and as previously reported on Mortgage Fraud Blog, in early 2004, Chamberlain planned to purchase a $489,900 house in Jarrettsville, Maryland, without putting any money down. This required her to obtain a first mortgage loan for $440,910 and a second mortgage loan for $48,990. Chamberlain had bad credit and so could not qualify for such a loan, so she purchased the house in the name of RLS, a nominee straw purchaser. However, because RLS had her own financial difficulties and could also not qualify for such a loan, Chamberlain created fraudulent income and employment information for RLS that would elevate her creditworthiness to A+ level so that Fremont Savings and Loan, the lender, would not verify the information as closely.

In reliance on the allegedly false statements, Fremont approved both loans and then sold the $440,910 first mortgage loan to Deutsche Bank and the $48,990 second mortgage loan to Citifinancial. Within a short time after the loans were made, Chamberlain stopped making the monthly payments and both loans went into foreclosure.

As part of the plea, Chamberlain acknowledged that she had also defrauded a Richmond mortgage company, Premier Mortgage and its investors out of money and their intangible rights to the honest services of their employees by means of materially false and fraudulent pretenses, representations, and promises. The total approximate loss to these victims was $1.4 million.

In pleading guilty, Chamberlain also admitted that in order to obtain employment and a partnership relationship with Premier Mortgage, in Glen Allen, Virginia, she misrepresented her academic credentials and previous loan production and performance levels. In reliance on these misrepresentations, Premier entered into a contractual relationship with the defendant and provided her with substantial funds. After Chamberlain established the relationship and obtained money and property from Premier, she then further misappropriated funds that she used for personal expenditures.

The case is being investigated by the Federal Bureau of Investigation, Charlottesville Division, and the Virginia State Police. Assistant United States Attorney David T. Maguire is prosecuting the case for the United States.

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5 responses to Mortgage Executive Pleads Guilty to Mortgage and Wire Fraud Charges

  1. Unfortunately, I know the person involved and what the article states is true to fact. This is not a cover-up for something the company did. She did in fact do what they are accusing her of.

  2. I think that the people doing this should not just get one or two years in prison they should do atleast 10-15 years or the maximum penalty for frauding the american people. what this woman did was insane. she should pay to the fullest extent of the law possible.

  3. I have to laugh at this article above… the second to last paragraph—- because this person made “false misrepresentations and promises”.

    PROMISES???? Since when do we convict people in a sales industry for not coming through on their promises.

    And the last paragraph… “she misrepresented her academic and performance and production” ???? Ok am I getting this right— so she lied on her resume???? Ok now we covict people on lieing on their resume????

    This seems all too fishy for me… I agree with Shirley someone here is taking the fall for someone else or she is totally the scapegoat here. YEAH THEY BETTER START BUILDING PRISONS FOR THESE FOLKS. The only problem is the ones that really deserve to go are still hangin out at the countryclub playing golf 3 times a week and living it up in their great big houses.

    This entire mess with this realestate and mortgage market was all caused by the people at the top and their greed!

  4. If you read the plea it states they already agreed to 45 months. But I find all this a little hard to believe that this is the entire picture. I have been in the Mortgage industry for over 20 years and no one goes to work for these companies without them doing a complete background check and especially for managers. So that tells me they are using someone else to cover their own actions. It amazes me of the individuals who are taking the hits for all this mortgage fraud, do not think for one minutes these companies and higher up executives do not know what is going on. In fact they are the ones putting out the orders, and if the ones at the bottom do not carry the tasks out then they will find others who will. All I can say is shame on them all GREED GREED GREED. From what I see they better start building prisons!

  5. Thank you for the great web site – a true resource, and one that many people clearly enjoy. Keep up the good work.

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