Houston Man Convicted of Mortgage Fraud

After pleading guilty before U.S. District Judge Keith Ellison, Seth Srader has been convicted for participating in a scheme to defraud residential mortgage lenders. According to Tim Johnson, acting U.S. attorney for the Southern District of Texas, Srader was involved in a mortgage fraud scheme where individuals were recruited to purchase residential properties at or near 100% financing using their good credit. The borrowers were paid from the loan proceeds for their participation in the acquisition of the property. Loan officers at mortgage brokerage offices were used to furnish false and fraudulent information to the lenders. Loan proceeds were disbursed to one or more of the conspirators through checks or wire transfers from the title company to a bank account established in an assumed name. Srader participated in the scheme as a borrower, purchasing two residential properties in the Houston area using false and fraudulent information. The loans Srader obtained, totaling $869,310, eventually fell into default. Srader, one of six people indicted in connection with the scheme, has been permitted to remain free on bond pending sentencing, which has been set for March 3, 2009.