Rochester, Illinois, Man Sentenced to 30 Months in Prison for Six Counts of Mortgage-Related Wire Fraud

SPRINGFIELD, Ill. –A Rochester, Illinois, man, Christopher Schaller, 48, of the 1500 block of Appalachian Trial was sentenced on June 9, 2022, to 30 months in prison, to be followed by three years of supervised release, for six counts of wire fraud resulting from a mortgage fraud scheme.

At the sentencing hearing, the government presented evidence that Schaller used his extensive knowledge of the mortgage industry and the trust placed in him by his employer, Diamond Residential Mortgage Corporation (Diamond), as the manager of its Springfield, Illinois, office, to defraud others and to benefit himself.

Also at the hearing, United States District Judge Sue E. Myerscough found Schaller was in a position of trust, was acting in a supervisory position, and utilized sophisticated means to conduct the wire fraud. Schaller was ordered to pay $61,369.36 in restitution and was prohibited from working in a mortgage-related employment position while on supervised release unless given express permission by the Court. Judge Myerscough ordered that $32,811 in restitution be made payable to the Veterans Administration, with the rest owed to Diamond. Previously, the Illinois Department of Financial and Professional Regulation (IDFPR) had revoked Schaller’s mortgage loan originator license and fined him $128,000. In a related matter, IDFPR and Diamond entered into a consent order where Diamond agreed to pay $1,275,000 to settle all allegations.

Schaller was indicted in September 2019 and plead guilty in August 2020. After initially being placed on bond, Schaller’s bond was revoked, and he has been in the custody of the U.S. Marshal since June 10, 2021.

The statutory penalties for wire fraud are not more than 20 years in prison, not more than five years of supervised release, and up to a $250,000 fine.

“The significant prison sentence imposed by Judge Myerscough shows that white-collar defendants who harm customers and steal from their employers and entities like the Veterans Administration will pay a stiff penalty for their actions,” said Supervisory Assistant U.S. Attorney Doug Quivey. 

“The Federal Bureau of Investigation prioritizes investigating sophisticated white collar crime schemes like the one used by Schaller,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “We are committed to dedicating our investigative resources to target fraud in its many forms to ensure offenders are brought to justice.”

The Federal Bureau of Investigation, U.S. Department of Housing and Urban Development, Illinois Attorney General’s Office, and the Illinois Department of Financial and Professional Regulation investigated the case. Assistant United States Attorneys Tanner Jacobs and Sierra Senor-Moore represented the government in the prosecution.