Lawrence Michael Day, Mortgage and Tax Evasion Scheme, TX, 2023

PLANO, TX – Lawrence Michael Day, 64, of Fort Worth is staring down the barrel of a lengthy federal prison sentence after admitting guilt to a sprawling mortgage fraud and tax evasion scheme. The con man pleaded guilty today in the Eastern District of Texas to conspiracy to commit mail and wire fraud and two counts of tax fraud, bringing an end – but not closure – to a case that exposed systemic greed and exploitation.

According to court documents, Day, along with accomplices, systematically defrauded lending institutions between 2005 and 2008. The scheme involved falsified documents used to secure residential loans on a total of 28 properties scattered across North Texas – Cedar Hill, Cresson, Dallas, Euless, Fairview, Fort Worth, Frisco, Heath, Hurst, McKinney, Murphy, Plano, Prosper, and Watauga all felt the impact. Day personally pocketed a staggering $1,877,032.56 from the illicit operation.

This wasn’t a solo act. Donna Shirley Cobb, 53, of Aledo, Texas; Michael Jerome Edwards, 41, of Lewisville, Texas; Scott Cameron Sherman, 38, of Mansfield, Texas; and Donald Lee Mattox, 41, of McKinney, Texas, have already copped pleas in the case and await sentencing. The feds are clearly aiming to dismantle the entire criminal network, and Day’s cooperation – or lack thereof – will likely influence the penalties for his co-conspirators.

But the fraud didn’t stop at mortgages. In October 2008, Day brazenly attempted to claim a combined $3,877,000 in fraudulent tax refunds on his 2006 and 2007 returns. He bolstered his claims with fabricated Forms 1099-OID, a desperate attempt to bilk the government. The sheer audacity of the move speaks volumes about Day’s contempt for the law and his relentless pursuit of ill-gotten gains.

Day now faces up to 30 years behind bars for the mortgage fraud charge and is ordered to forfeit the $1,877,032.56 he illegally obtained. The tax fraud violations carry a potential sentence of three years in prison and a $100,000 fine per count. A sentencing date remains to be set, but one thing is certain: Lawrence Day’s days of easy money are over. This case is a prime example of the work of the Financial Fraud Enforcement Task Force established by President Obama.

The investigation was a joint effort by the Federal Bureau of Investigation, the Federal Housing Finance Agency – Office of Inspector General, and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorneys Christopher A. Eason and J. Andrew Williams are prosecuting the case. This should serve as a warning: financial crimes will be pursued relentlessly, and those who prey on the system will be held accountable.