Apr 22, 2014 6:54 PM
A United States District Court Judge sentenced a Magalia man to four and a half years in prison for his participation in a mortgage fraud scheme.
Johnny Grivette Jr., 39, pleaded guilty to conspiracy to commit mail fraud and money laundering in July of 2012.
Grivette was manager of a company that bought residential properties at market prices and sold them to buyers who were investors in an investment program. Once the company bought the properties, it paid an appraiser to appraise them for significantly higher than the true market value. This allowed the homes to be financed at loan-to-value ratios significantly higher than the limits lenders authorized.
“Victims of mortgage fraud may include the banks which loan the money, but also include all homeowners and would-be homeowners who end up paying for this type of fraud,” said José M. Martínez, the IRS agent in charge of the investigation.
2 days ago