By participating in two separate mortgage schemes, Stephen Kottage has pleaded guilty in U.S. District Court of Connecticut to two counts of conspiracy relating to these fraud cases.
According to court documents, Kottage conspired with others to commit wire fraud by making materially false statements to H&R Block Home Mortgage Inc. The type of fake statements made to mortgage company included a loan application, W-2, employment verification, and pay stub relating to a mortgage on a home on Fire Island, N.Y.
In addition, Kottage admitted to conspiring to commit bank fraud by submitting a false loan application to Washington Mutual to refinance a condominium in Florida.
A co-defendant, Mary Ellen Durso, was the straw owner for the condominium in order to obtain the fraudulent loan proceeds for Kottage and other co-conspirators, court documents said.
In both schemes combined, Kottage and other conspirators defrauded Wells Fargo and Freddie Mac of more than $600,000.
Kottage, who is currently detained, is scheduled for sentencing on July 11. He faces a maximum prison term of 30 years for each count and has to pay restitution of at least $616,547.
Durso pleaded guilty to one count of conspiracy and five counts of filing false tax returns last December. She has been sentenced to three years of probation.
The Federal Bureau of Investigation and the Internal Revenue Service are examining this case.
