A former Charlotte lawyer has pleaded guilty to mortgage fraud related charges in a high-profile case that has netted 91 defendants, announced Anne M. Tompkins, U.S. Attorney for the Western District of North Carolina.
Michele V. Mallard, 46, of Charlotte, pleaded guilty to mortgage fraud conspiracy, money laundering conspiracy, and embezzlement in violation of the wire fraud statute.
The case, one of the largest mortgage fraud investigations in the country, is part of Operation Wax House, a probe that began in 2007 and has resulted in 72 guilty pleas so far.
Mallard’s guilty plea came after a trial that began on Monday, July 8, 2013, before Chief U.S. District Judge Frank D. Whitney. According to evidence introduced at trial, Mallard agreed to use her law license to further mortgage fraud primarily in South Charlotte and Waxhaw, N.C.
Prosecutors alleged that Mallard accepted kickbacks from co-conspirators who purchased houses at inflated prices. The co-conspirators would then pay Mallard with bogus checks, making it appear as though buyers had provided money when they had not.
Mallard also allegedly stole over $30,000 from clients by embezzling from her trust account. She faces a maximum prison term of 70 years at sentencing.
The operation is being handled by the Charlotte Division of the FBI and the Criminal Division of the IRS for the Financial Fraud Enforcement Task Force, along with the Securities Division of the North Carolina Secretary of State.
The Financial Fraud Enforcement Task Force, created in November 2009, is a broad coalition of law enforcement, investigatory, and regulatory agencies working together to combat financial fraud crimes.
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Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release ↗
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