Des Moines, IA – A local man has been sentenced to 90 months in prison for his role in a mortgage fraud scheme that defrauded multiple lenders out of over $1 million.
On August 19, 2013, Paul Kramer, 43, of Granger, Iowa, was sentenced by Chief United States District Judge James E. Gritzner to 90 months in prison for wire fraud, bank fraud, and conspiracy, announced United States Attorney Nicholas A. Klinefeldt.
Kramer was also sentenced to five years of supervised release following incarceration.
Between 2006 and 2009, Kramer knowingly used his mortgage company, Kramer Mortgage, and his real estate closing company, Iowa Closing and Escrow, to defraud multiple lenders. Kramer orchestrated straw sales of thirteen properties to another company, LDF, using a straw buyer, Shannon Flickinger.
Kramer submitted loan applications in which Flickinger was named as the buyer despite knowing that LDF was the true buyer. Flickinger’s income was grossly inflated in the applications in order to qualify him for the loans.
After Flickinger’s fraudulent loan applications were approved, the straw sales were closed at Kramer’s mortgage company. The proceeds from the sales were used to pay Kramer’s personal or business expenses, rather than being paid to the lenders.
Kramer’s activities resulted in significant losses for one bank and left many homeowners unable to sell or refinance their homes due to unclear titles.
The case was investigated by the Federal Bureau of Investigation, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Key Facts
- State: Iowa
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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