A former mortgage broker who had worked for a business in Beaverton, Ore., faces more than four years of prison time and will likely have to pay a yet-to-be-determined amount in restitution for his role in a $2.5 million fraud scheme.
A U.S. District Court judge has sentenced David Ovist of Lake Oswego, Ore., to 57 months in prison followed by three years of supervised released, according to the Federal Bureau of Investigation.
In February, Ovist had been convicted of fraud and wire fraud for preparing residential loan applications for 12 different properties that falsified the borrower’s financial qualifications.
According to the FBI, “Ovist and the other investors manipulated the underwriting process in order to qualify borrowers for home loans they would not otherwise be qualified for so the investors could buy houses as an investment.” Ovist submitted the applications to seven different banks and lenders.
Four other investors involved in the scheme also have been sentenced to lesser prison terms. All four are residents of Portland, Ore.
Don Kazlauskas was sentenced to six months in prison, followed by six months of home detention and three years of supervised release. Jacob Shoop was sentenced to six months of home detention, and three years of supervised release. His father, Ricki Shoop, was sentenced to two months of home detention and three years of supervised release, and his mother, Sherrie Inouye of Portland, was sentenced to three years of supervised release.
A hearing has been scheduled for October to determine how much restitution each of the defendants owes to the victim of the scam.