FOR IMMEDIATE RELEASE:
MONDAY - June 23, 2008
OPERATION MALICIOUS MORTGAGE
RALEIGH - United States Attorney George E.B. Holding announced that two women, KELLEY ANNE SPAULDING, 38, of Durham, North Carolina, and ELIZABETH WHITAKER CLEMENT, 46, of Raleigh, North Carolina have pled guilty to conspiring to commit wire fraud, in violation of Title 18, United States Code, Section 371. A third co-conspirator, WILLIAM MONTELLE LOYD, III, 56, of Raleigh, North Carolina, was charged by an 18-count Criminal Indictment returned by a Federal Grand Jury on June 4, 2008. LOYD has been charged with one count of conspiring to commit wire fraud, in violation of Title 18, United States Code, Section 371; nine counts of wire fraud and aiding and abetting, in violation of Title 18 United States Code, Section 1343; six counts of mail fraud and aiding and abetting, in violation of Title 18, United States Code, Section 1341; and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to the Indictment, LOYD, SPAULDING, and CLEMENT entered into an agreement to defraud E-Loan, an Internet-based financial services company located in Pleasanton, California, that offers to the public mortgages and other types of consumer loans. Multiple mortgage loans from E-Loan were obtained by submitting documents containing false statements regarding the buyer’s personal income and employment history. On October 3, 2003, and October 6, 2003, SPAULDING and LOYD faxed a fraudulent pay stub and a W-2 Form, respectively. The pay stub indicated a false year-to-date income of $185,225 while the W-2 Form indicated an annual salary of $283,381, that defendants knew was false. On November 13, 2003, and November 22, 2003, SPAULDING and LOYD submitted signed loan applications, one of which gave a false monthly salary of $20,580.55.
On May 15, 2003, and June 15, 2003, CLEMENT and LOYD faxed a W-2 Form and a pay stub, respectively, to E-Loan, both of which were fraudulent. The year-to-date salary on the pay stub indicated the false amount of $73,077.64. Finally, on June 25, 2003, CLEMENT and LOYD submitted a signed loan application stating employment and monthly income information, which were known by defendants to be false.
CLEMENT and SPAUDLING were charged by Bills of Information filed on May 27, 2008 and June 2, 2008, respectively. Conspiring to commit wire fraud, exposes a defendant to five years’ imprisonment, a $250,000 fine and/or both, and three years supervised release following their terms of imprisonment. LOYD additionally faces up to 20 years imprisonment and/or a fine of up to $250,000, and up to three years supervised release for wire fraud and mail fraud. For the charges of aggravated identity theft, LOYD could receive two years imprisonment consecutive to any other sentence imposed, a fine of up to $250,000, and up to one year supervised release.
These cases are in connection with last week’s nationwide operation entitled Malicious Mortgage, in which more than 400 individuals have been charged with violations relating to mortgage fraud.
Mr. Holding said, “Stopping mortgage fraud is a top national priority of the Department of Justice. Here, in the Eastern District of North Carolina, we are continuing to focus on this problem to protect the integrity of our financial and housing markets.”
An Indictment and/or Information contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
Investigation of the case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Felice McConnell Corpening served as prosecutor for the government.
News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.