• /
    • Archives /
  • May 31, 2026

Archives For May 31, 2026

Man Charged with Mortgage Fraud

Stephanie Abbott —  June 8, 2026 — Leave a comment

Yan Daniel Inclan Hernandez 32, Orlando, Florida, has been charged by indictment with one count of making a false Statement to a financial institution and three counts of wire fraud.

According to the indictment, in September of 2021, Hernandez made a false statement on a mortgage loan application submitted to a financial institution claiming $12,350 in monthly income. This false statement influenced the financial institution’s decision to approve and fund a $411,350 mortgage loan which Hernandez used to purchase a property in Orlando.

Additionally, between May 2020 and August 2021, Hernandez engaged in a wire fraud scheme to fraudulently obtain COVID-19 pandemic Paycheck Protection Program (PPP) loans for himself and an Economic Injury Disaster Loan (EIDL) for his company from the U.S. Small Business Administration (SBA). Hernandez caused PPP and EIDL applications to be submitted that overstated gross monthly payroll, gross monthly income, gross annual revenues, and the number of employees. These material misstatements, and others, fraudulently induced the SBA and PPP lenders to fund the loans.

If convicted on all counts, Hernandez faces a maximum penalty of 30 years in federal prison per count. The indictment also notifies the defendant that the United States is seeking an order of forfeiture in the amount of $157,500, the proceeds of the charged criminal conduct. United States Attorney Gregory W. Kehoe made the announcement.

An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.

This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, the U.S. Department of Housing and Development – Office of Inspector General, the Federal Bureau of Investigation, and the U.S. Small Business Administration – Office of Inspector General.  It will be prosecuted by Special Assistant United States Attorney Chris Poor.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars. Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

 

In Mortgage Fraud ,
 permalink

Former D.C. Housing Authority Employee Pleads Guilty to $15 Million Mortgage Fraud Scheme

Stephanie Abbott —  June 3, 2026 — Leave a comment

Richard Cunningham, 55, a former D.C. Housing Authority employee turned real estate developer residing in the District of Columbia, pleaded guilty today in U.S. District Court in connection with a scheme to defraud private mortgage lenders of more than $15 million.

Cunningham pleaded guilty today before Judge Trevor N. McFadden to charges of false statements to a mortgage lending business

According to court documents, beginning in or about August 2020 and continuing through May 2024, Cunningham engaged in a scheme to defraud private mortgage lenders by submitting false statements and fraudulent documents in support of loan applications for multifamily properties he owned or controlled in the District of Columbia.

In the first phase of the scheme, Cunningham applied for six secondary renovation loans from a Virginia-based private mortgage company, which required him to have sufficient equity in his properties as collateral. Knowing his equity was insufficient to qualify, Cunningham submitted falsified mortgage statements for the primary loans on those properties, significantly understating the balances owed to make his equity appear greater than it was. Relying on those falsified documents, the lender funded all six loans, totaling about $7.4 million.

In the second phase, Cunningham sought renovation financing from an Oregon-based private mortgage company for two additional District properties. To make those properties appear to generate reliable income, Cunningham fabricated lease documents purporting to be from a “Veterans Assistance Payments” program run by the U.S. Department of Housing and Urban Development. There is no such program. In reality, Cunningham had taken genuine Housing Assistance Program lease documents from HUD’s Housing Choice Voucher program and altered them, changing “HAP” to “VAP” throughout, then filled them in with forged entries and signatures to make it appear veterans were already living at the properties under a federal voucher program. He also submitted fabricated rent rolls falsely showing all tenants held vouchers from the Department of Veterans Affairs. The lender funded one of the two loans, in the amount of $4.7 million. The other application was rejected.

In total, Cunningham sought about $14.9 million from the two lenders and received about $12.1 million based on his false statements.

Cunningham faces a maximum statutory penalty of 30 years in prison and a $1 million fine. Sentencing was scheduled for Dec. 4, 2026.

The announcement was made by U.S. Attorney Jeanine Ferris Pirro.

The investigation was conducted by the FBI Washington Field Office and the Department of Housing and Urban Development, Office of Inspector General (HUD-OIG).

The matter was prosecuted by HUD-OIG Special Assistant U.S. Attorney Samantha R. Miller for the U.S. Attorney’s Office for the District of Columbia.

On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division. The core mission of the Fraud Division is to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars.  Department of Justice efforts to combat fraud support President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within Federal benefit programs.

 

In Mortgage Fraud , ,
 permalink

Former Mayor Sentenced to Prison For Mortgage Fraud in Connection with Fraudulent Short Sale

Stephanie Abbott —  June 1, 2026 — Leave a comment

Nathaniel Anderson, 59, a town councilman and the former Mayor of Willingboro, New Jersey, was sentenced to prison for committing mortgage fraud in connection with a fraudulent short sale of real estate.

According to documents filed in this case and the evidence at trial:

From March 2015 through June 2017, Nathaniel Anderson and Chrisone Anderson, 58, conspired and agreed to orchestrate a fraudulent short sale of a property in Willingboro from Nathaniel Anderson to Chrisone Anderson.

As part of the conspiracy to defraud a government-sponsored enterprise to discharge a mortgage obligation on Nathaniel Anderson’s property in Willingboro and to induce a mortgage lending business to issue a new mortgage on the property, Chrisone Anderson executed – and Nathaniel D. Anderson aided and abetted the execution of – mortgage documents containing materially false representations. These included that the short sale was an arm’s length transaction, that Chrisone Anderson did not have a prior business relationship with Nathaniel Anderson, that Nathaniel Anderson would not continue to occupy the property as his residence following the short sale, and that Chrisone Anderson would occupy the property as her primary residence.

As a result of the fraudulent short sale, the government-sponsored enterprise discharged Nathaniel Anderson’s mortgage obligation, causing a total loss of over $200,000, and the victim lender issued a new mortgage on the property. , and his business associate

Nathaniel Anderson and Chrisone Anderson, 58, were previously convicted by a federal jury of one count of conspiracy to commit wire fraud affecting a financial institution, one count of bank fraud, and two counts of making a false statement on a mortgage application.

On June 1, 2026, U.S. District Court Judge Robert Kirsch sentenced Nathaniel Anderson to 12 months and one day in prison, to be followed by a three-year term of supervised release.  Chrisone Anderson was sentenced to eight months’ home confinement to be followed by a three-year term of supervised release.  Both Nathaniel Anderson and Chrisone Anderson were ordered to pay restitution to the victims in the total amount of $221,9862.71.

U.S. Attorney Robert Frazer made the announcement.

U.S. Attorney Frazer credited special agents of the FBI, Newark Division, Trenton Resident Agency, under the direction of Special Agent in Charge Stefanie Roddy in Newark; and special agents of the Northeast Region of the Federal Housing Finance Agency, Office of the Inspector General, under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Joseph McFarlane of the Special Prosecutions Division, and Assistant U.S. Attorney Andrew M. Trombly, Deputy Chief of the Criminal Division in Newark.

 

In Mortgage Fraud , ,
 permalink