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Bank Fraud Conviction in Middleton
A mortgage broker from Middleton, Massachusetts, has been convicted of attempted bank fraud in federal court. Michael P. O’Donnell, 53, was found guilty of one count of bank fraud following a three-day bench trial.
According to court documents, O’Donnell, through his company AMEX Home Mortgage, knowingly submitted false loan applications to lenders to obtain mortgage loans on behalf of borrowers seeking to purchase or refinance real estate. The scheme involved submitting fraudulent information and documents on behalf of a Salem homeowner for two loans totaling nearly $400,000.
O’Donnell misrepresented the homeowner’s income, stating it was $10,000 a month, when in fact it was around $1,200. He also prepared and submitted bogus bank account statements, which reflected the homeowner as having more than $50,000 in savings, when in reality, no such account existed.
The trial focused on O’Donnell’s submission of a fraudulent loan application for a $44,000 loan on behalf of the Salem homeowner from the now-defunct Countrywide Bank, FSB. He collected fees totaling more than $15,000 from the two loans.
Michael P. O’Donnell faces a sentence of no greater than 30 years in prison, five years of supervised release, and a fine of $1,000,000. The sentencing is scheduled for October 20, 2015.
United States Attorney Carmen M. Ortiz and Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Veronica M. Lei and Mark J. Balthazard.
O’Donnell’s conviction serves as a reminder of the severe consequences of bank fraud and the importance of honesty in financial dealings.
Key Facts
- State: Massachusetts
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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