California Man Sentenced For Making False Statements On FHA Insured Loan
Michael Conley Given 60 Months Probation, Ordered to Pay Over $38,000 in Restitution
ROANOKE, VIRGINIA -- An Oakdale, Calf. man who lied on documents allowing him to buy a home in Dry Fork, Va., was sentenced today for making false statements or declarations to the U.S. Department of Housing and Urban Development (HUD).
Michael Douglas Conley, 28, previously waived his right to be indicted and pled guilty to an Information charging him with one count of making false and fraudulent statements to HUD in support of a Federal Housing Administration (FHA) mortgage. Today in U.S. District Court, Conley was sentenced to 60 months of probation, six months of which will be served on home detention. The defendant was also ordered to pay $38,655 in restitution.
“In an effort to obtain a mortgage for which he would not otherwise qualify, Mr. Conley lied to the federal government about his financial condition and employment,” United States Attorney Timothy J. Heaphy said today. “His brazen fraud has landed him in federal court, where he will be held accountable for his actions.”
Conley admitted that when he purchased a $76,900 home in Dry Fork, he lied on documents submitted to FHA about his employment status. On the documents used to secure the FHA loan, Conley stated that he and his wife worked for a company in Mooresville, North Carolina. He provided false documents to support the claims when, in fact, neither was employed at the time.
As a result of the false statements made to FHA and HUD, Conley was issued a mortgage in the amount of $75,711 in October 2005. Subsequently, he made one mortgage payment before the loan fell into default status and was ultimately foreclosed on, causing a loss to HUD of $38,000.
The investigation of the case was conducted by the U.S. Department of Housing and Urban Development . Assistant United States Attorney Charlene Day is prosecuting the case for the United States.