Brett Matheson, a Phoenix real estate investor, has pleaded guilty to conspiracy to commit wire fraud in relation to a $50 million mortgage fraud scheme.
Matheson served as the president and CEO of Maricopa Property Investment Solutions, where he recruited straw buyers at real estate seminars to purchase homes for him.
From January 2005 through September 2006, Matheson submitted false loan applications on behalf of the straw buyers that contained inaccurate information regarding employment, income, assets and the intent to occupy homes as their primary residence.
At the closing of the purchase, court documents said the defendant and co-conspirators received proceeds that were kicked back to a company that Matheson controlled.
Two other conspirators have also pleaded guilty to this fraudulent incident and are awaiting sentencing.
“This guilty plea reminds us of the destructive role mortgage fraudsters played in the financial crisis that has impacted every Arizonian and the entire country,” said Dennis K. Burke, U.S. attorney. “Schemes like this have destroyed property values, crippled lending institutions and ruined entire neighborhoods in our community. It has resulted in the loss of tax revenues and jobs. We will continue to investigate and prosecute those who have profited from mortgage fraud.”
Court documents said the lenders were not aware that straw buyers were being used during this scheme. Matheson used the kickbacks to make downpayments for additional straw buyers to qualify for financing to acquire more properties.
In total, 52 properties were involved in this scheme and approximately $50 million in fraudulent loans. Lenders lost nearly $20 million from this scheme.
Matheson is facing a maximum prison term of 30 years and a fine of at least $1 million when he is sentenced for conspiracy to commit wire fraud.
