Maryland mortgage broker pleads guilty to loan fraud

A Maryland mortgage broker yesterday pleaded guilty to several counts of mail fraud. The broker is being charged by the U.S. Attorney for Maryland. These charges are in relationship with multiple bogus loans and mortgages. This is a great example of why you need to exercise caution when applying for personal loans and mortgages. Be sure to check out the loan provider thoroughly.

Seeing mortgage fraud all over Maryland

A guilty plea came from Maryland mortgage broker Douglas Skibicki. Counts of mail fraud were what he pleaded guilty to. Skibicki admitted to many things. Apparently he "participated in a scheme to defraud lenders, family members, and banks." He ended up getting mortgages for himself and for others. In order to do this, he lied. There was an appraiser that worked for Skibicki sometimes making fraudulent appraisals. These would be on empty lots occasionally.

Families lost out with installment loans

The Maryland installment loans that Skibicki brokered were originally intended for families and businesses. These real estate loans were taken out as ways to refinance existing mortgages and get more financing out of existing properties. Empty lots would end up getting loans. Some would have minimal structures there. Then there were the appraisals that said something else. It said that hundreds of thousands of dollars' worth of homes existed in three and four bedroom sizes. Skibicki got loans for families that they couldn't realistically pay back. The mortgage lenders and banks got false documentation.

Mortgage fraud giving a punished

There was definitely mortgage fraud costing millions that Skibicki participated in. Mail fraud is what he is being charged with though. There was also a cease and desist order that Skibicki will have to deal with. The short-term loan, mortgage and financial industry will never be seeing Skibicki again. Lenders got mortgage forms from Skibicki in the mail. That is why there is a sever mail fraud charge. Sentencing is scheduled for April of this year, and he could be facing up to 20 years in prison, in addition to forfeiting $1.4 million in property and gains, as well as being fined twice the amount of ill-gotten gains.

Citations

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