BOSTON- A Canton man was sentenced today in federal court for his role in preparing fraudulent appraisals in connection with the sale of a multi-family residence in Dorchester.
Richard G. Lane, 46, was sentenced by U.S. District Judge Nathaniel M. Gorton to 27 months in prison to be followed by two years of supervised release and ordered to pay $2.3 million in restitution to the victim lenders. On Feb. 15, 2012, Lane pleaded guilty to wire fraud charges.
United States Attorney Carmen M. Ortiz said, “Appraisers are an important part of a real estate transaction, as banks rely on their expertise to make lending decisions. Overinflated valuations cost banks, and ultimately the consumer, money.”
Lane prepared false appraisals at the behest of associate Michael Lee in connection with the 2007 sale of three condominium units at 162 Quincy Street, in Dorchester, to a straw buyer. Lane inflated the value of each unit and also falsely represented in the appraisals that the straw buyer was purchasing only one unit in the building, when, in fact, the same buyer was purchasing all three units. For these appraisals, and six other similarly false appraisals on other properties, Lee paid Lane about $24,500.
Lee was previously charged, convicted and sentenced to one year and a day in prison to be followed by three years of supervised release. Lee was also ordered to pay $1.9 million in restitution in connection with the scheme.
United States Attorney Carmen M. Ortiz; Steven Ricciardi, Special Agent in Charge of the U.S. Secret Service; and William P. Offord, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.