Michael Gerard Camphor, Mortgage Fraud, Maryland 2016

A Baltimore real estate agent has been sentenced to 27 months in prison for his role in a $735,000 mortgage fraud scheme involving four properties in Baltimore City.

Michael Gerard Camphor, 60, of Baltimore, was sentenced by U.S. District Judge James K. Bredar on February 28, 2016, for his involvement in the fraudulent purchase of four properties in Baltimore, using fraudulent loan documentation and straw purchasers, resulting in losses of over $735,000.

According to court documents, Camphor worked as a real estate agent for a company and also operated a real estate consulting business called Ron Gerard LLC, a/k/a Ron Gerard & Associates. He and his co-conspirators, including Cecil Chester, found buyers for the properties and advised them that they didn’t need to contribute funds to buy the properties, promising to place tenants in the properties whose rent payments would cover the monthly mortgage payments.

The conspirators set the purchase price for the properties to exceed their actual fair market value, generating excess proceeds from the transactions from which they could profit. They provided false information about the straw purchasers’ employment, income, and financial assets to the mortgage loan brokers to enable them to qualify for home mortgage loans.

One of the conspirators brought the straw purchaser to the closing and caused them to falsely sign certifications in the closing documents affirming that the property was to be used as the primary residence, and that no portion of the down payment and closing costs were borrowed. Following the settlement on each transaction, Camphor and his co-conspirators received substantial payments drawn from the proceeds of the loan.

The properties involved in the scheme were 126 S. Curley Street, 1720 W. Pratt Street, 322 S. Robinson Street, and 8020 Gough Street, all located in Baltimore. All four properties went into foreclosure, resulting in a loss of at least $735,000.

Camphor was ordered to pay restitution of $735,363.47 and to forfeit $962,274.95. He has agreed to forfeit property retained or obtained as a result of the fraudulent conspiracy, including 1619 W. Baltimore Street, and other properties.

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