On behalf of Law Offices of Mark M. Kratter, LLC on December 14, 2011
The United States Attorney for the District of Connecticut sentenced a Connecticut man to 18 months in prison late last month. The man was found guilty of orchestrating a $4 million mortgage fraud scheme that eventually resulted in foreclosure on several of his properties. Following his imprisonment, he will be required to undergo three years of supervised release.
Between December 2006 and March 2007, the man was said to have provided false information and failed to disclose other required information to mortgage lenders when he submitted applications. In one case, after the man obtained a mortgage to buy a home, he did not disclose the existence of the mortgage when applying for financing to buy other properties. He also falsely claimed on the mortgage applications that he intended to live in some of the homes when he was said to have had no intention of doing so.
More than $4 million in mortgages was obtained to acquire at least six properties. However, the man was unable to pay the mortgages, and the homes he bought went into foreclosure.
While the person in this case resorted to fraud to cope with hard financial times, it is important for others to know that filing for bankruptcy is good way to find debt relief legally. Thousands of well-intentioned Connecticut homeowners are confronted with debt issues every day. For homeowners who have suffered economic loss, whether because of a divorce, health issue or other circumstance, bankruptcy may be a viable option. In today's economic climate, many people have trouble making ends meet and find their homes on the brink of foreclosure. Fortunately, filing for bankruptcy can halt a foreclosure and help struggling Americans get a fresh financial start.
Source: The Loansafe, "Connecticut Man Sentenced for Role in $4 Million Mortgage Fraud Scheme," Evan Bedard, Nov. 30, 2011
