PHILADELPHIA – In a shocking case of widespread corruption, Walter Alston Brown, 47, of Providence Forge, Virginia, and Glen Allen, Virginia, and Cynthia Evette Brown, 53, of Philadelphia, PA, were each sentenced to 180 months in prison for their roles in a multi-million dollar mortgage fraud scheme.
The scheme, which involved inflating purchase prices on loan documents for more than 100 Philadelphia properties, resulted in over $20 million in fraudulent loan proceeds between May 2004 and February 2009. The defendants, who were among 17 charged in the case, used the scheme to purchase properties, recruit ‘straw buyers’ and falsify mortgage loan applications.
Walter Brown, a mortgage broker with First Horizon Home Loans, Foxworth Inc., Carteret Mortgage, and Advantage Lending, was also one of the four owners of KREW Settlement Services, a real estate settlement company. He was convicted on October 17, 2014 of conspiracy to commit loan and wire fraud, false statement in an FHA loan, loan fraud, and tax evasion.
Cynthia Brown, a former employee of Unicco Service Company, was convicted of conspiracy to commit loan and wire fraud, false statement in an FHA loan, loan fraud, and wire fraud. The two defendants were ordered to pay significant restitution to the victims of their fraud, with Walter Brown ordered to pay $7,213,123 to the victims and $31,903 to the IRS, and Cynthia Brown ordered to pay $7,488,608.48 to the victims.
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service Criminal Investigations, and the Department of Housing and Urban Development’s Office of Inspector General. It was prosecuted by Assistant United States Attorney Michael S. Lowe.
U.S. District Court Judge Berle M. Schiller also ordered both defendants to complete five years of supervised release after their prison sentences. The scheme, which was carried out over a period of five years, highlights the need for increased oversight in the mortgage industry and the importance of holding individuals accountable for their actions.
The sentence sends a strong message that mortgage fraud will not be tolerated, and those who engage in such activities will face severe consequences. The Grimy Times will continue to follow this story and provide updates as more information becomes available.
Related Federal Cases
- Emily Wilson, Investment Adviser Fraud, Pennsylvania, 2023 · Ohio
- June Gibbs-Brown, Healthcare Fraud Enforcement, Washington DC, 1993 · Ohio
- June Gibbs Brown, Health Care Fraud Fighter, Washington DC, 2023 · Ohio
- Joseph W. Witkowski, Mortgage Fraud Scheme, NJ 2023 · New Jersey
- Sark Wire Corporation, PPP Fraud, Albany NY, 2023 · New York
Key Facts
- State: Pennsylvania
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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