Dustin Michael Thompson, 30, and Sean Paul McLaughlin, 29, were indicted on four counts of Wire Fraud and one count of Conspiracy to Commit Wire Fraud as a result of their involvement in a cash back mortgage fraud scheme. Thompson was arrested on March 13, 2009 in Las Vegas on a criminal complaint and is detained pending trial. McLaughlin received a summons to appear in federal court on the charges.
The case against the pair is based on an investigation which alleges that from October 19, 2005, through June 5, 2007, they conspired to commit mortgage fraud in the Phoenix, Arizona area. Thompson and McLaughlin submitted mortgage loan applications on behalf of buyers, that included friends and family members, containing false information. Following the funding of the loans, Thompson and McLaughlin received cash back that they used for personal expenses and to perpetuate the scheme. Most of the homes purchased during the conspiracy have foreclosed.
A conviction for each count of Wire Fraud and Conspiracy to Commit Wire Fraud is punishable by a maximum term of 30 years in prison, a $1,000,000 fine or both. The investigation in this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The prosecution is being handled by Kevin M. Rapp, Assistant U.S. Attorney, District of Arizona, Phoenix.