A Massachusetts attorney, Michael R. Anderson, 41, of Framingham, was charged in federal court with 16 counts of wire fraud, nine counts of bank fraud, and two counts of money laundering in connection with a multi-year, multi-property mortgage fraud scheme.
The Federal Bureau of Investigation alleges that from September 2006 to April 2008 Anderson committed fraud in connection with the purported sale of 27 condominium units in Boston.
A developer, Michael David Scott, who was charged separately in an indictment Aug. 26, 2010, and his associates bought multi-family dwellings promising to convert them into condominiums, and then resold the individual units to various straw buyers.
Scott, Anderson and others arranged for the straw buyers to obtain mortgage financing by falsifying key information, such as the buyers’ intent to reside in properties, assets, down payment, and/or funds paid at closing.
The defendant and others arranged to prepare loan closing documents which the defendant used to facilitate the closings.
The bureau further alleges that Anderson caused mortgage loan proceeds to be disbursed to Scott. In most instances, the straw buyers obtained residential mortgage loans for properties they never intended to live in.
While the lenders (mortgage companies and one bank) were led to believe they were lending to residential purchasers who had made substantial down payments, the developer and others recruited buyers by representing the purchases to them as a no-money-down “investment” opportunity.
The “investors” were assured they would not have to make any down payments, pay any closing costs, or pay expenses relating to the maintenance of the units, but would share in profits when the units were sold.
Each count of bank fraud carries a sentence of up to 30 years in prison to be followed by up to five years of supervised release and a fine of up to $1 million, Each wire fraud count carries imprisonment up to 20 years to be followed by up to three years of supervised release and up to a $250,000 fine.
The money laundering counts each carry a maximum punishment of 10 years in prison to be followed by up to three years of supervised release and a fine of $250,000.
A U.S. District judge Monday dismissed three lawsuits--including one by the National Credit Union Administration--brought against U.S. Bank National Association and Bank of America, National Association regarding their duties as trustees of residential mortgage-backed securities.