A Michigan man has pleaded guilty to orchestrating a massive mortgage fraud scheme that left lenders with a $394,000 loss.
Wasseem Shamoun, 43, pleaded guilty to conspiracy to commit bank fraud in the U.S. District Court for the Eastern District of Michigan, according to a statement from the government.
Shamoun and six other individuals were charged in a superseding indictment in July 2013 with conspiracy to commit bank fraud, multiple counts of bank fraud and other fraud charges.
According to court documents, Shamoun and his co-defendants devised a scheme to defraud lending institutions by obtaining mortgage loans using fraudulent information from approximately January 2006 to December 2008.
The scam involved purchasing property for approximately $5,000 to $40,000 per home, then recruiting straw buyers to submit fraudulent loan applications for home mortgages in exchange for a fee.
Shamoun was personally responsible for a loss of approximately $394,000, and faces a statutory maximum sentence of 30 years in prison and a $1 million fine.
U.S. District Judge Bernard A. Friedman has scheduled sentencing for Shamoun on Dec. 2.
The case was investigated by the FBI, IRS – Criminal Investigation and the Drug Enforcement Administration, and is being prosecuted by Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald of the Tax Division.
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Key Facts
- State: Michigan
- Category: Fraud & Financial Crimes|White Collar Crime|Crime
- Source: DOJ Press Release ↗
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