Two conspirators from Baltimore who operated a $1 million fraud scheme have been sentenced by the District of Maryland.
Kimberly McMillian will serve two years in prison, followed by five years of supervised release, for wire fraud. Her accomplice, Glenroy Day Sr., was given two years’ probation, with the first year to be served in home confinement. Day also has to perform 200 hours of community service during his second year of probation.
In 2007, McMillian convinced an investor to sell three properties to her clients from New York. Once the transaction was agreed upon, McMillian submitted loan applications for the three assets, as well as a fourth property, to a loan officer at a mortgage corporation which were subsequently approved.
But a government investigation found that virtually all the information submitted in the four applications were false. In two cases, the purported buyers had already returned to their home countries, while the other two “buyers” listed on the applications were either stolen or fictitious identities.
Additionally, the documentation on each loan application contained inaccurate employment, income, and financial assets for each alleged purchaser.
McMillian hired Day, an unlicensed appraiser, to prepare the appraisal reports on all four properties because she knew he would provide an appraisal at the exact contract price no matter what the real value of the property should be.
Day admitted several infractions to federal officials in his appraisal reports, including falsely indicating that two properties had recently been renovated, submitting interior photographs from a different home, and that the reports were reviewed and approved by a licensed appraiser, which did not happen.
Based on the false information made on the loan applications as well as the inaccurate appraisal reports, the mortgage company agreed to extend financing on each of the four properties, totaling more than $1 million.
McMillian received approximately $278,000 from closing the four transactions, while Day obtained about $2,000.
After the closings, the mortgage on each property soon went into default.
U.S. District of Maryland Judge George Russell, III ordered McMillian and Day to pay $1 million and $540,000 in restitution, respectively.
