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Press Release

Two Sentenced In HUD Mortgage Fraud Case

For Immediate Release
U.S. Attorney's Office, District of Idaho

Defendants Each Agree to Pay Nearly $43,000 in Restitution

POCATELLO – Darin John Henecke, 37, of Pocatello, and Karen DeWall Shaw, 60, of Chubbuck, Idaho, were sentenced yesterday to five years of probation for making false statements to the Department of Housing and Urban Development (HUD), a misdemeanor, U.S. Attorney Wendy J. Olson announced. U.S. Magistrate Judge Ronald E. Bush ordered each defendant to also pay $42,905 in restitution.

According to plea agreements filed in the case, on March 13, 2009, Henecke obtained a residential loan to finance the purchase of a residence in Eagle, Idaho. The loan application submitted in support of Henecke’s loan falsely represented that his co-borrower had employment income of $2,400 per month, when in fact she had no income. The lender relied upon this information to fund the loan, which was guaranteed by HUD. Shortly after the loan was funded, it went into default and foreclosure, causing HUD to sustain a loss. When interviewed by investigators, Henecke admitted that he knew false employment information was submitted to obtain the loan.

Shaw admitted during an interview with investigators in April 2011, that she assisted in the fraud by providing false employment information in order for the borrowers to qualify for the loan. According to the plea agreement, false documents included payroll checks, check stubs, a general employment contract, and employee confidentiality agreement.

The case was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG).

Today's announcement is part of efforts underway by President Obama's Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys' offices and state and local partners, it's the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants including more than 2,700 mortgage fraud defendants. For more information on the task force, visit

Updated December 15, 2014