Cincinnati Man Sentenced to Three Years for Mortgage Fraud

Eric Philpot of Cincinnati, Ohio, was sentenced to 37 months in prison for a scheme he ran that defrauded mortgage lenders out of more than $200,000 in less than two years. Philpot, who pleaded guilty on June 17, 2008, to one count of mail fraud and one count of conspiracy to commit money laundering, solicited people to buy residential properties and helped them secure financing by providing lenders with false information about the buyers' income, source and scope of the down payments and other information. Additionally, Philpot failed to disclose to the lenders material information about the true nature of the real estate deals so that appropriate business decisions could be made by the lenders. Philpot admitted that, once the loans were approved, he maintained control both of the properties that were often deeded in the names of others and the loan proceeds. These actions led to losses for the lenders. Philpot also fraudulently obtained financing for the sale of one property while he knew he was under federal investigation for mortgage fraud. A hearing is scheduled for Feb. 2, 2009, to determine the amount of restitution Philpot must pay.