Fraudulent loan broker pleads guilty to mortgage fraud

The other day, another mortgage broker was found guilty. He pleaded guilty in exchange for minimal sentencing. The charges are federal. The United States Attorney’s office for Maryland is heading up the charges. These charges are in relationship with multiple deceitful loans and mortgages. This is a great example of why you should exercise caution when applying for pay day loans and mortgages. Make sure you have a look at the loan provider thoroughly.

In Maryland there has been a lot of mortgage fraud

Several counts of mail fraud are what Maryland mortgage broker Douglas Skibicki pleaded guilty to. According to Skibicki, he "participated in a scheme to defraud lenders, family members, and banks." He applied for and received multiple mortgages and helped others receive mortgages under entirely fraudulent circumstances. Fraudulent appraisals, many times for empty lots, were made also with an appraiser that worked with Skibicki.

Many families hurt with installment loans

There were other people expecting the Maryland installment loans from Skibicki. Families and business were expecting them. In order to refinance mortgages and get more financing, many of the loans were taken out on properties. There were minimal structures on many of the lots that were also empty. However, appraisals indicated that there were three and four bedroom homes worth hundreds of thousands of dollars. Loans that families couldn't ever pay back were created too with false documentation to banks from Skibicki.

How mortgage fraud ends up being punished

There was definitely mortgage fraud costing millions that Skibicki participated in. Mail fraud is what he is being charged with though. Skibicki will not be able to do any short-term loan, financial or mortgage industry business because of a cease-and-desist order. Because Skibicki mailed the mortgage forms to lenders, the mail fraud charge is more severe. 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.

Articles cited

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