A Wichita, Kan., man was sentenced to seven years and three months in federal prison without parole for his role in a $2.7 million mortgage fraud scheme.
A federal court found Terrence Matthew Brown, 49, of Round Rock, Texas, formerly of Wichita, guilty of conspiracy to commit wire fraud and five counts of wire fraud, according to Tammy Dickinson, United States attorney for the Western District of Missouri. In addition U.S. District Judge Brian C. Wimes ordered Brown to pay more than $1.2 million in restitution.
In 2006 Brown and his co-conspirators participated in a mortgage fraud scheme that defrauded lenders in 10 separate mortgage loans on five properties in Missouri and Kansas. Within three months Brown filed loan applications that contained false information about his income, employment, assets and liabilities that ultimately resulted in the approval of up to $2.7 million in mortgage loans, according to court documents.
Brown and his co-conspirators purchased the properties at inflated prices, structured the mortgages in a way that allowed Brown to receive more than $200,000 in illegal kickbacks from the loan proceeds without the knowledge or consent of the lenders, and also submitted false invoices to the title companies that closed the loans.
Court documents also show that Brown, a sex offender required to register where he lives, did not use any of the five properties as his primary residence. Eventually all loans went into default and the properties were foreclosed.
