Real Estate Agent Jailed for Submitting Fraudulent Pay Stubs to Lender

Allison Tussey —  May 2, 2014 — 1 Comment

Christian Sanchez, 47, Rogers, Arkansas, was sentenced to 18 months in federal prison, three years of supervised release, and a $2500 fine for making False Statements to a Financial Institution relating to a mortgage loan application.

Sanchez falsified a client’s employment information in order to obtain approval of the loan. The Honorable Timothy L. Brooks, U. S. District Court Judge for the Western District of Arkansas presided over the sentencing hearing. Sanchez was also ordered to pay restitution in the amount of $132,550.26.

According to the indictment and plea agreement, on or about January 14, 2009, Sanchez, a real estate agent with Lighthouse Real Estate, Rogers, Arkansas, submitted false and fraudulent pay stubs to Countrywide Bank. Sanchez made the false statements for the purpose of influencing the action of the bank in connection with an application, commitment, and loan of Pedro and Maria Lerma for the purchase of property located in Rogers. The false information stated that Lerma was employed by Progressive General Builders, a company owned by the defendant’s brother.

When the bank called to verify employment of Lerma, they were told that he had been employed there since January 2008, when in fact, he had never worked there. Upon interviewing Lerma, it was learned that Lerma had provided Sanchez with his tax returns and Sanchez then took all of Lerma’s information to the bank. Lerma also stated that he had never heard of Progressive General Builders, and that he had never worked there. Sanchez pled guilty to the charge on September 4, 2013.

Conner Eldridge, United States Attorney for the Western District of Arkansas, announced the sentence.

This case was investigated by the FBI and HUD, Office of Inspector General. Assistant United States Attorney Mark Webb prosecuted the case for the United States.

U. S. Attorney Eldridge commented, “As this case shows, we are dedicated to identifying and prosecuting fraudulent misrepresentations designed to induce others to advance funds. In this case, a real estate agent perpetrated a scheme to falsify the employment of a client in order to get a loan approved. Such conduct is clearly fraudulent and has now been prosecuted.”

Allison Tussey

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One response to Real Estate Agent Jailed for Submitting Fraudulent Pay Stubs to Lender

  1. Ummm… this was even after the mortgage banking bubble pop. It amazes me as an underwriter how they still try this stuff. During that time they did not verify ALL income by the 4506 Tax audit. So I can see how this happened. However, now they verify all income, W-2 or self.

    When they eliminate “commission” and “volume production rewards”, it will get better.
    People are greedy.

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