Mortgage Scam Nets 7 Year Sentence

admin —  March 24, 2010 — Leave a comment

Terral Toole, 42, Lake Elsinore, California, was sentenced to 85 months and ordered to pay $291,055 in restitution to three financial institutions for his role in a mortgage fraud scheme.

Toole pleaded guilty in November 2009 to four counts of wire fraud and four counts of money laundering for his role in a mortgage fraud scheme that collected approximately $4 million in loan proceeds for properties that were not for sale. Previously in this case, three other defendants were sentenced for their roles in the mortgage fraud scheme.

They are:
Angela Cotton, 38, Fontana, California who ran a bogus title company, was sentenced to five years in federal prison and was ordered to pay restitution of $4,044,681.
Miles Davis, 47, Reseda, California, a loan processor, was sentenced to three years of probation, including six months of home detention.
Lisa Lievanos, 46, Fontana, California who was convicted at trial of five felony counts, was sentenced to one year and one day in prison.

According to court documents and as previously reported on Mortgage Fraud Blog, the evidence presented at Lievanos’ trial, the participants in the scheme, including people such as Lievanos, who agreed to act as “straw buyers” fraudulently “purchased” properties and obtained millions of dollars in mortgage loans. The defendants then spent the fraudulently obtained money on personal expenses such as luxury cars and gambling expenses. The various applications for mortgages contained false information, such as false employment and income information.

This case is a result of an investigation by the FBI’s Southern California.


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