Easton Man Pleads Guilty to Mortgage Fraud

Fred Stevens of Easton, Conn., pleaded guilty to participating in a mortgage scheme to defraud IndyMac Bank and other financial institutions. According to documents filed with the court, from approximately April 2006 to September 2007, Stevens was a mortgage broker in Westport, Conn., where, working with property developers, lawyers, "hard money" lenders, an appraiser, employees of financial institutions and others, he submitted fraudulent mortgage applications with IndyMac and other financial institutions to secure mortgages for certain clients. Stevens earned a fee for the fraudulent mortgage applications that he submitted on his clients' behalf. Stevens submitted a fraudulent mortgage application package to IndyMac related to a property located in Westport. The application contained numerous false pretenses and representations such as an inflated borrower's income, a false claim that the property was owner-occupied, a falsified appraisal and a false claim that the payments developers made on the property were a bonus given to the borrower by his employer. IndyMac approved the mortgage application and the loss resulting from Stevens' scheme exceeded $1 million. Sentencing is scheduled for Feb. 13, 2009.