Alfer Rodenburg, 65, of Houston, Texas, has been sentenced to 14 months in federal prison for his role in a brazen mortgage fraud scheme that flooded lenders with over $1.4 million in bad loans. The former mortgage broker pleaded guilty to conspiracy to defraud financial institutions, admitting he helped falsify loan applications on 14 residential properties in a 30-day spree across Northwest Indiana.
Rodenburg, sentenced by U.S. District Judge Joseph S. Van Bokkelen in Hammond, will serve 24 months on home detention following his prison term. He was also ordered to pay $1,004,991.64 in restitution to the defrauded financial institutions. Prosecutors say Rodenburg knowingly concealed his co-defendant’s true financial liabilities, allowing unqualified loans to be approved with no chance of repayment.
The fraud unfolded when Rodenburg, acting as a licensed broker, conspired with Walter Woldt to secure first and second mortgages using falsified documentation. Loan applications submitted between 2004 and 2005 contained deliberate lies about income, assets, and existing debts—information critical to lenders assessing risk. By hiding Woldt’s crushing liabilities, Rodenburg sabotaged the lending process, turning mortgage approvals into guaranteed losses.
The scheme funneled more than $1,400,000 in loan proceeds through sham transactions, with properties flipped or abandoned as defaults mounted. Banks, believing they were funding qualified buyers, were left holding worthless deeds while Rodenburg and Woldt cashed out. The fraud collapsed under its own weight, triggering federal scrutiny that took over a decade to reach sentencing.
Rodenburg is set to report to the Bureau of Prisons on April 6, 2018. His co-conspirator, Walter Woldt, faces sentencing the same day at 1:30 p.m. at the United States Federal Court House in Hammond, Indiana. Both men’s fates now rest in the hands of Judge Van Bokkelen, who presided over a case emblematic of the unchecked greed that fueled the mid-2000s housing meltdown.
The investigation was led by the Federal Deposit Insurance Corporation–Office of Inspector General, with Assistant U.S. Attorney Diane L. Berkowitz handling prosecution. U.S. Attorney Thomas L. Kirsch II confirmed the outcome, underscoring federal resolve to pursue long-dormant financial crimes. ‘No fraud is too old to ignore,’ said a DOJ spokesperson. ‘The books will be balanced—one way or another.’
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Key Facts
- State: Indiana
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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