TWO FAIRFIELD COUNTY FAMILY MEMBERS SENTENCED FOR ROLES IN MORTGAGE FRAUD
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COLUMBUS – Scott M. Gaib, 38, of Lancaster was sentenced to 18 months in prison and his wife, Erica S. Gaib, 37, also of Lancaster, was sentenced to a year and a day in prison for their roles in a mortgage fraud scheme they used to obtain loans in connection with the purchase and refinancing of eight properties in central Ohio. Scott Gaib was ordered to pay $1,697,080.73 in restitution to victim banks. Erica Gaib was ordered to pay $884,329.92 in restitution.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, and Jose Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), Cincinnati, announced the pleas entered before U.S. District Judge Gregory L. Frost.
Scott Gaib pleaded guilty on September 9, 2010 to one count of conspiracy and one count of money laundering. Erica Gaib pleaded guilty on September 10, 2010 to one count of attempted money laundering.
According to a statement of facts read during the plea hearing, Scott Gaib combined with certain other persons to purchase residential properties in and around Central Ohio during the years
2005, 2006 and 2007. In so doing, he would use exaggerated and inflated real estate appraisals in order to document to prospective lending institutions an exaggerated worth of the properties involved. Further, he and co-conspirators would misrepresent his credit worthiness to lending institutions in order to assist in achieving approval of excessive mortgage loans. They would also misrepresent his intention to reside at the properties being purchased. Finally, Scott Gaib and other conspirators would and did receive substantial monies - "kickbacks" - directly and indirectly from the proceeds of the excessive mortgage loans, which "kickback" monies were concealed from the lending financial institutions.
A third family member, Wayne Gaib, 40, of Canal Winchester and the brother of Scott Gaib pleaded guilty on July 13, 2010 to one count of money laundering and was sentenced on October 28, 2010 to 12 months and a day at a halfway house and was ordered to pay $813,802.14 in restitution.
Stewart commended the IRS agents who conducted the investigation, as well as Assistant U.S. Attorneys Dan Brown and Laura Denton, who are prosecuting the case.
