6 arrested for ETX mortgage fraud conspiracy
POSTED: Wednesday, April 17, 2013 - 5:23pm
UPDATED: Wednesday, April 17, 2013 - 5:31pm
Sherman, Tx (KETK) — Six North Texans have been indicted and arrested in connection with a mortgage fraud conspiracy in the Eastern District of Texas.
Lawrence Day, 63, of Fort Worth, Donna Cobb, 52, of Aledo, Bryan Scott, 42, of Spring, Michael Edwards, 40, of Flower Mound/Lewisville, Scott Sherman, 37, of Mansfield, and Donald Mattox, 40, of Mansfield were charged for conspiracy to commit mail and wire fraud.
From September 2005 to July 2008, the defendants were working with each other to defraud lending institutions by obtaining mortgage loans using fraudulent information. According to the indictment, the defendants devised a scheme in which Day recruited buyers, such as Mattox, to submit fraudulent loan applications for home mortgages.
To carry out the scheme, Edwards and Scott, loan officers, falsified materials including employment and rental income on loan applications. Builders such as Sherman and Mattox, permitted the actual purchase price of the homes to be overstated on the loan documents.
Cobb, an escrow officer, prepared the fraudulent documents reflecting false purchase prices and disbursements. The conspiracy extended to transactions on 28 Texas residential properties located in Fort Worth, Frisco, Fairview, Dallas, McKinney, Cedar Hill, Prosper, Cresson, Watauga, Euless, Hurst, Heath, Murphy, and Plano.
Day, Edwards, and Sherman also charged with two counts of wire fraud and Day is charged with two counts of aggravated identity theft.
The defendants were scheduled to make an appearance this afternoon before U.S. Magistrate Judge Amos Mazzant.
If convicted of conspiracy charge, the defendants will each face up to 30 years in federal prison. The wire fraud charges also carry a maximum penalty of 30 years in federal prison. The identify theft charges carry a penalty of two additional years in prison.
A grand jury indictment is not evidence of guilt and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.