Prominent Homebuilder Takes Plea Bargain for Mortgage and Mail Fraud – 18 U.S.C. § 1341
It was recently reported in the Daily Journal that a Northern California homebuilder, Anthony Symmes, 59, has agreed to plead guilty to charges that he artificially inflated the prices of 62 new homes as part of a mortgage fraud scheme. Symmes acknowledged he sold homes to an unlicensed mortgage broker when housing prices began to fall in late 2006.
That broker was Garret Griffith Gililland, who fled the country and was arrested in Spain. Gililland is awaiting trial and has plead not guilty to 24 charges alleging he participated in a $100 million mortgage fraud ring in California and other states.
Gililland allegedly approached Symmes in the fall of 2006 and offered to buy the homes using a network of so-called straw buyers. The pair agreed to raise the home prices between $40,000 to $60,000 with Gililland pocketing some of the extra cash and paying back his investors.
Mortgage fraud is the intentional misstatement, misrepresentation, or omission by an applicant of a loan or other interested parties, relied on by a lender or underwriter to provide funding for, to purchase, or to insure a mortgage loan. The straw buyer will take out a loan to purchase a home with an inflated price. The broker pockets the profit from the inflation. The home forecloses and the bank is left with the inflated mortgage.
It was estimated that lenders lost $5 million from Symmes’ homes. Thirty eight of his homes foreclosed and ten of them were short sold.
Symmes plead guilty to one count of mail fraud which is punishable by up to 20 years in prison. He also plead guilty to one count of money laundering which is punishable by up to 10 years in prison. Symmes has paid $4 million in restitution to the U.s. Treasury as part of his plea agreement. He has agreed to cooperate in the Gililland investigation.
Mail fraud is committed when someone devises a scheme to defraud, or to obtain money or property through false or fraudulent pretenses and uses the Postal Service to execute this scheme. The punishment for committing mail fraud is a fine, or imprisonment in federal prison for up to 20 years, or both the fine and imprisonment. See 18 U.S.C. § 1341.
If you or a loved one is facing a federal fraud charge, it is important that you speak with an experience federal law attorney. At Wallin & Klarich, our attorneys have over 40 years of experience in handling federal crimes. We will provide you with the quality representation you deserve. Our attorneys will aggressively fight to defend your rights. Call Wallin & Klarich today at (888) 280-6839. We will be there when you call.
