Texas Broker Convicted of $12 Million Mortgage Fraud

A federal judge has found Clarence Lewis III guilty of defrauding residential mortgage lenders following a trial in Houston. Lewis held a mortgage broker license and operated Motown Mortgage Group in addition to holding a real estate broker license and operating Lewis & Associates Realtors. U.S. District Judge Lynn Hughes found Lewis guilty following a non-jury trial. Lewis and his co-conspirators used both companies to defraud residential mortgage lenders by recruiting individuals with good credit to apply for mortgage loans, many of whom were promised money for signing loan documents and attending the real estate closing at the title company where the mortgage notes were signed. Lewis further induced them to act as borrowers by stating he would ensure the notes were paid and that the property was managed until it could be resold. From January 2002 to January 2008, Lewis is alleged to have obtained more than $12 million in fraudulently obtained loans. Sentencing is scheduled for Aug. 17.