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Barry Wayne Plunkett Jr., 60, and Nancy Plunkett, 55, both of Hyannis Port, Massachusetts, a former Massachusetts attorney and his wife were indicted today in federal court in Boston in connection with various mortgage fraud schemes.

According to the indictment, until he was disbarred in October 2017, Barry Wayne Plunkett Jr. owned and operated the Plunkett Law Firm where his wife, Nancy Plunkett, was his office assistant and paralegal.

The indictment alleges that the defendants engaged in several bank fraud schemes. In one scheme, from September 2012 to July 2016, the defendants defrauded six mortgage lenders and 14 homeowners for whom the Plunkett Law Firm handled the closings for new mortgage loans to refinance residential properties. The defendants informed the mortgage lenders that pre-existing mortgages were paid off from the new loan proceeds when, in fact, the Plunketts intentionally failed to pay off the prior liens and instead converted more than $900,000 in payoff funds for their own purposes.

In other bank fraud schemes – between April 2015 and March 2018 – it is alleged that the Plunketts fraudulently used various names, entities and false documents to obtain three successive mortgage loans on their home in Hyannis Port, Massachusetts in amounts of $412,000, $470,000 and $1.2 million. The defendants pledged as collateral a property in Hyannis Port that was held in a family trust for which Barry Wayne Plunkett Jr. was one of three beneficiaries. Both defendants participated in providing false documents to the lenders, including false title reports and other records to falsely represent that the property was free and clear of existing mortgage liens and forged documents in the names of other people. The defendants also allegedly made misrepresentations to a lender that Nancy Plunkett was a single woman living in Wellesley who was purchasing the property in her maiden name as a business investment when, in fact, the defendants had been married since 2014 and the property was their residence.

Both were were indicted on five counts of bank fraud and one count of aggravated identity theft. Barry Wayne Plunkett Jr. was also charged with one count of tax evasion.

The charge of bank fraud provides for a sentence of up to 30 years in prison, five years of supervised release and a fine of $250,000. The charge of tax evasion provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000.  The charge of aggravated identity theft provides for a mandatory two-year sentence to be served consecutively to any other sentence imposed. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

 

United States Attorney Andrew E. Lelling; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Kristina O’Connell, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. Assistant U.S. Attorney Victor A. Wild of Lelling’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.

David Tyrone Johnson, 48, Washington, D.C. was indicted on charges that he conspired to commit bank fraud and other crimes arising from a real estate scheme involving a forged mortgage satisfaction document.

Johnson was named in a six-count indictment that was returned on August 9, 2016. He is charged with federal violations of conspiracy, bank fraud, wire fraud, engaging in illegal monetary transactions, and making a false statement, as well as uttering, which is a District of Columbia offense.  The indictment also includes a forfeiture allegation seeking all proceeds that can be traced to the fraud scheme. Johnson pled not guilty to the charges at his first court appearance.

According to the indictment, SunTrust Mortgage, Inc. loaned a friend of Johnson’s approximately $470,000 to purchase residential real estate in the 100 block of 57th Street SE in 2008.  By 2009, the friend had failed to repay the mortgage loans, and in 2010, SunTrust Mortgage filed a notice of foreclosure with the District of Columbia’s Recorder of Deeds. In April 2013, SunTrust Mortgage began the process of foreclosing on the mortgage and taking possession of the property, due to the friend’s failure to make good and timely payments on the mortgage loans.

The indictment alleges that sometime before October 2, 2013, Johnson caused the creation of two phony and forged certificates of satisfaction, which falsely represented that the SunTrust Mortgage loans at the property on 57th Street SE had been paid and that his friend owned the property “free and clear.”  The indictment also alleges that on October 2, 2013, Johnson filed these two phony certificates of satisfaction with the Recorder of Deeds.

In or about December 2013, after the fake certificates of satisfaction allowed the friend to sell the property without paying the outstanding mortgages, the title and escrow company wired out the sales proceeds of $337,105, of which approximately $170,688 was obtained by Johnson.

The indictment, which was unsealed in the U.S. District Court for the District of Columbia, was announced by U.S. Attorney Channing D. Phillips and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office.In announcing the charges, U.S. Attorney Phillips and Assistant Director in Charge Abbate expressed appreciation for the work performed by those who investigated the case from the FBI’s Washington Field Office. They also acknowledged the efforts of those working on the case from the U.S. Attorney’s Office, including former Paralegal Specialist Corinne Kleinman, Paralegal Specialist Kaitlyn Kruger, Litigation Tech Specialist Ron Royal, and Assistant U.S. Attorney Thomas Swanton, who is assisting with forfeiture issues. Finally, they commended the work of Assistant U.S. Attorney Virginia Cheatham who is prosecuting the case.

Denise Bruce, 56, Hingham, Massachusetts was indicted on five counts of bank fraud for defrauding mortgage companies in connection with multiple mortgages she obtained on a single residence

According to the indictment, between 2004 and 2008, Bruce fraudulently obtained five mortgage loans from different banks in amounts ranging from $325,000 to $487,500 on her Hingham, Massachusetts, property by submitting false information regarding her employment history, income, assets, and debt.  The indictment also alleges that Bruce filed fraudulent discharges of mortgages with the Plymouth County Registry of Deeds to create the appearance that earlier loans had been paid in full, when in fact, none of the loans had been paid.

The charging statute provides a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1 million on each count.

United States Attorney Carmen M. Ortiz; Steven Perez, Special Agent in Charge of the Federal Housing Finance Agency, Office of Inspector General, Northeast Region; and Michael Rourke, Special Agent in Charge of the Troubled Assets Relief Program, Special Inspector General, New York Field Office, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Victor A. Wild of Ortiz’s Economic Crimes Unit.

Jennifer McTigue, 48, Honolulu, Hawaii pled guilty to conspiring to commit wire fraud, mail fraud, and money laundering, as well as committing wire fraud, mail fraud and money laundering. McTigue pled guilty in federal district court before Senior District Judge Consuelo B. Marshall a day after jury selection for her trial was to have commenced.

In connection with her guilty plea, McTigue, who is representing herself and identifies herself as a “private non-citizen American national” stated:

“I feel I must take responsibility for people being damaged and that’s why I’m here today to plead guilty.”

Documents filed by McTigue in the court case had caused the Judge to order that she undergo a competency evaluation.

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