FORMER MORTGAGE BROKER CHARGED WITH MULTI-MILLION DOLLAR FRAUD
BOSTON, Mass...A 39-year-old Norwood woman was charged today in federal court in connection with a multi-million dollar mortgage fraud scheme.
ELIZABETH REED was charged in an Information with 40 counts of wire fraud and 15 counts of money laundering.
The Information alleges that in 2005 and 2006, as the owner and operator of Mass Lending, LLC, a loan origination business, REED purchased a 24-unit building in Dorchester for conversion to condominiums. It is alleged that REED and others recruited “straw buyers” to buy the condominiums as “investments” by promising the buyers that they would not have to make any down payments or pay any closing costs or other expenses relating to the units, but would share in the profits when the units were resold.
The Information alleges that REED, and others, caused fraudulent mortgage loan applications and closing documents in the names of buyers to misrepresent that borrowers had made large down payments and paid significant closing costs, that borrowers had income and assets in excess of their real income and assets, and that borrowers intended to live in the condominiums as their own residences. According to the Information, the lenders were defrauded of $ 4.9 million dollars in loan proceeds.
If convicted on the wire fraud charges, REED faces up to 20 years imprisonment, to be followed by three years of supervised release, and a $ 250,000 fine on each count; each count of money laundering carries a sentence of up to 10 years in prison to be followed by three years of supervised release and a $ 250,000 fine.
United States Attorney Carmen M. Ortiz; Richard DesLauriers, Special Agent in Charge of the Federal Bureau of Investigation’s Boston Field Division; and William P. Offord, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation – Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Victor A. Wild and Ryan M. DiSantis of Ortiz’s Economic Crimes Unit.
The details contained in the Information are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
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