Industry News

Ex-mortgage loan officer to do heavy time for fraud

Six convicted in case that cost banks more than $5 million

A federal judge has sentenced a former mortgage loan officer convicted of organizing a Washington, D.C., house-flipping scheme involving mortgage fraud to more than 24 years in prison. In sentencing Charles E. Hall Sr. to serve 293 months in prison and to pay restitution of $5.04 million, Judge Sterling Johnson called the former loan officer "a predator" whom the community must be protected from. A jury convicted Hall, 37, in August of conspiracy, bank fraud, wire fraud and money laundering. Prosecutors said the former Guaranty Residential Lending loan officer organized a conspiracy to flip more than 30 homes, netting more than $5.2 million. Hall recruited straw buyers and submitted loan applications listing false assets, income and other information to apply for $14 million in loans, according a statement released by U.S. Attorney Jeffrey A. Taylor.  The mortgages on all but one of the 32 properties involved had defaulted and foreclosed or were sold before foreclosure for ...

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