Portland LO Sentenced To 63 Months For Fraud

After pleading guilty on Oct. 2, 2008, to charges relating to a mortgage fraud scheme, Marty Ray Folwick, a real estate officer from Portland, Oregon, was sentenced to 63 months in prison, followed by 48 months of supervised release. In addition, Folwick was ordered to pay $536,514 in restitution to one bank. Other victim banks will have 60 days to seek further restitution. Folwick's scheme related to a single property in Woodburn, Ore., which was purchased for $390,000. Folwick found buyers for the property and then falsified their loan application by overstating their monthly income, failing to disclose that the buyers had an outstanding mortgage on another property, and failing to disclose that Folwick was receiving a $25,000 kickback from the transaction. At the plea hearing, prosecutors argued that Folwick had engaged in similar illegal conduct with respect to almost 70 properties. The government submitted a memorandum asserting that there were 32 victim banks and 21 straw buyers used by Folwick to perpetuate his mortgage fraud scheme.