Industry NewsMortgage

3 prison-bound in $4M mortgage fraud

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A woman who established a bogus title company and a loan processor are among four defendants in a mortgage fraud ring in Southern California's Inland Empire who have been convicted of felonies, with three receiving prison terms ranging from one to seven years.Angela Cotton, 38, of Fontana, was sentenced Thursday by U.S. District Court Judge John F. Walter to serve five years in federal prison and ordered to pay restitution of $4 million for her role in the scheme.Terral Toole, 42, of Lake Elsinore, was sentenced Monday to seven years, one month in prison and ordered to pay $291,055, the U.S. Attorneys Office for the Central District of California said in a press release.Cotton allegedly found two properties in Rancho Cucamonga that had lis pendens notices and, with the assistance of real estate professionals and straw buyers, fraudulently "purchased" one of the properties and obtained a $635,000 loan.A second loan that netted the defendants $526,500 involved a refinance of a ...