Former colorado springs man sentenced to 43 months in prison for orchestrating mortgage fraud scheme
DENVER – William M. Silvi, age 45, was sentenced today by U.S. District Court Judge Wiley Y. Daniel to serve 43 months in federal prison for wire fraud U.S. Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced. Silvi was ordered to spend 3 years on supervised release after he serves his term of imprisonment. Judge Daniel also ordered Silvi to pay restitution totaling $606,096.81. Silvi is currently serving time for state charges and will be turned over to the Bureau of Prisons once his time is served on the state charges.
Silvi was indicted by a Federal Grand Jury in Denver on August 9, 2010. At the time of his indictment, he was in custody in New Jersey pending state charges, but lived in Colorado Springs during the time of the offenses. Silvi appeared in Denver on March 14, 2011 where he was advised of the charges pending against him and remand in custody. He pled guilty on November 2, 2011 to one count of wire fraud.
According to the information contained in the indictment as well as the plea agreement, beginning in March 2005, and continuing through January 2008, Silvi devised and executed a scheme to defraud various financial institutions and commercial lenders in connection with the residential mortgage loans related to eleven properties in Colorado Springs, Larkspur and Fountain, CO, some of which were bought and sold multiple times during the scheme.
To execute the fraudulent scheme, Silvi found people he knew to purchase residential properties. In order to qualify each buyer for the mortgage loans needed to purchase these residential properties, Silvi made false statements on the Uniform Residential Loan Applications ("URLA") and in the supporting documentation, including: (1) inflating or fabricating the employment income, rental income, and/or assets of the buyer; (2) providing a false IRS Form W-2 and/or paycheck stub for the buyer; (3) false verifications of rent for the buyer; and (4) falsely stating that the property would be a primary residence for the buyer.
As part of the transactions for these property purchases, Silvi and the property seller inflated the sale price of the property so that Silvi would receive the inflated portion of the sale price at, or shortly after, the closing of the purchase transaction. This money was usually paid to the seller at the closing of the purchase transaction; however, the seller then paid Silvi from the disbursement funds. These disbursements to Silvi were not disclosed on the HUD-1 Settlement Statement. In furtherance and execution of the scheme, interstate wires were used to send the funds for the mortgage loans.
"In this case, the defendant approached people he knew to participate in this mortgage fraud scheme," said U.S. Attorney John Walsh. "Entangling friends with false promises of easy money will almost certainly get you in trouble, including going to prison."
"Mortgage fraud creates significant financial harm to individuals, businesses and our economy,” said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. "Those who line their pockets with profits from these schemes should know they will not go undetected and will be held accountable."
This case was investigated by Internal Revenue Service - Criminal Investigation (IRS - CI), and was prosecuted by Assistant U.S. Attorney Pegeen Rhyne.