Milton Man Sentenced For Mortgage Fraud
BOSTON - A Milton man was sentenced late yesterday in federal court on bank and wire fraud charges in connection with a property flipping program which involved sham purchasers buying multiple properties which were ultimately the subject of foreclosure.
Edward Johnson, 53, was sentenced by Judge Denise J. Casper to 28 months in prison and ordered to pay restitution of $430,110 to the victim lenders. From about May through July 2006, Johnson recruited two financially unqualified individuals to buy multiple properties in Dorchester and Mattapan. To secure their participation in the scheme, Johnson, or others acting with him, promised these individuals that they would have no responsibility for any expenses or payments on the property, would hold title in their name for a few months until the property was improved and then sold, and in exchange, they would receive a payment for each property purchased. Johnson, and others, submitted false mortgage applications on behalf of these individuals that misrepresented their income, employment, prior indebtedness, and intention to reside in the purchased properties. The mortgages were not paid as promised and all of the properties went into foreclosure.
United States Attorney Carmen M. Ortiz; Vincent B. Lisi, Special Agent in Charge of the Federal Bureau of Investigations, Boston Field Division; Christina Scaringi, Special Agent in Charge of U.S. Department of Housing and Urban Development, Office of the Inspector General
Northeast Regional Office; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; and Boston Police Commissioner William B. Evans made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Lori J. Holik and Sandra S. Bower of Ortiz’s Major Crimes and Economic Crimes Units.