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$1.2 Million Mortgage Fraud Scheme | Former Mortgage Brokers Sentenced

Springfield, MO (May 19) – U.S. Attorney, Beth Phillips, of the Western District of Missouri sentenced three former mortgage brokers of the five co-defendants for their role in a mortgage fraud scheme involving 20 homes with mortgages ranging from $200,000 to half a million dollars.

Charles M. Davis, age 35, of Rogersville, Missouri received four years and three months in a federal prison without parole. Davis was ordered to pay $1,271,590 in restitution. Scott Allen Kassebaum, age 42, of Ozark was given two years in federal prison without parole and ordered to pay $209,100 in restitution.

Kassebaum’s wife, Cheryl Joan, age 43, received a 15 month sentencing in federal prison without parole and was ordered to pay $497,200 in restitution. Steven Ray Spencer, age 49, of Carl Junction, Missouri., was sentenced to two years and six months in federal prison without parole and ordered to pay $436,556 in restitution. Shanda Lynn Moore, age 45, of Springfield, Missouri., was sentenced to three years of probation, including six months of home confinement and a $3,000 fine and restitution of $262,755.

Sentencing stems from charges that Davis, a former mortgage broker and owner of Master Marketing Consultants, conspired to “obtain mortgage loans for the purchase of homes based on false loan applications.” Davis knowingly prepared and submitted falsified documents overstating income and understating or omitting liabilities. He falsely claimed the purchaser intended to use the home as a primary residence. In some instances false claims of employment were also listed.

In a statement from the Justice Department, “A significant portion of the loan proceeds was returned to the purchasers of the homes (who also were the borrowers) without the lender’s knowledge. Davis facilitated these kickbacks to the purchasers by routing the proceeds through Master Marketing Consultants and, in some cases, through Metro Consulting Group, which was owned by the Kassebaums.”

Assistant U.S. Attorney Douglas C. Bunch prosecuted the case after investigation by the FBI and the IRS-Criminal division.

Posted by on May 19, 2010. Filed under Criminal Justice,Money,National News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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