Jason Morales, 44, Chagrin Falls, Ohio, has been indicted on six counts of bank fraud in a mortgage fraud scheme.
According to the indictment, Morales concocted and executed a mortgage fraud scheme targeting a financial institution. To ensure that otherwise unqualified borrowers were approved for mortgage loans, Morales created fictitious and fraudulent paystubs and other employment documents in the name of a construction company and consulting company that his clients never worked for. The bogus income documents falsely indicated that his clients had worked at these companies and had monthly earnings. Additionally, Morales altered legitimate bank statements provided by the borrowers and created fictitious bank statements that he submitted to the financial institution falsely representing that the borrowers had sufficient assets to qualify for the mortgage loans. Morales submitted the fictitious documents he created to the financial institutions who relied on them when making underwriting decisions.
To further deceive the financial institution, Morales created websites for the construction and consulting companies listing his email and phone number so that when the lenders called to verbally verify employment Morales impersonated company executives and falsely verified employment.
If convicted, Morales faces a maximum penalty of 30 years in federal prison on each count. U.S. 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, U.S. Department of Housing and Urban Development – Office of Inspector General, and Federal Bureau of Investigation. It will be prosecuted by Special Assistant United States Attorney Chris Poor.
