A mother-daughter pair was recently sentenced to a two-year prison sentence for their involvement in a fraud scheme. The fraud scheme was comprised of mortgage fraud that affected different properties located in New Jersey. Both the mother and daughter pled guilty to two wire fraud charges. The total amount of the mortgage fraud accumulated in the scheme was $1.9 million.
The mother and daughter acted as straw buyers in the mortgage incident. The term straw buyer means a person who acts as a kind of third-party property buyer with good credit but not the financial means to purchase the intended property.
The mother and daughter acted as straw buyers on two New Jersey properties. In order to pose as potential buyers, the mother and daughter were accused of using false financial documents created to establish the requisite credit and financial means for them to pose as buyers. The false financial papers provided the documentation required for the approval of the two mortgages. The mother and daughter’s profit was seen as a kick-back for their roles in the fraud.
Fraud charges often involve some type of theft and therefore require proof that the defendant knowingly committed the specific acts that are part of the criminal charge. In general, wire fraud is an allegation that the fraud charges were furthered at least in part by the use of electronic means. The electronic means that are frequently used in wire fraud are phones, emails or internet sources. Fraud charges are never cut and dry, which means that any defense won’t due. If you want to protect your future, experience can go a long ways when it comes to choosing your representation.
Source: 7th space, “Mother and Daughter Each Sentenced to Two Years in Prison for Mortgage Fraud Scheme,” May 7, 2012