FraudNews reports that three individuals, a disbarred lawyer, a crooked loan officer and another man could possibly get long prison sentences for their role in a mortgage fraud scam involving two well known North Carolina banks. All three have pleaded guilty on a variety of counts. The US attorney’s office states that they caused losses amounting to over $ 1 million.
Loans department bank officer Mark David Webb, and Goldsboro real estate lawyer, William Devaughn Orander III worked at both banks between 2004 and 2008 when the fraud took place. The banks allowed borrowers to make a purchase of properties without having money of their own. They also allowed them to walk away from the closing table with more than 50% of the purchase price for property in cash. Prosecutors stated that there were a lot of instances where the money was paid to other members of the conspiracy. This was either done individually or using the real estate holding companies that the co-conspirators owned. As for Southern Bank’s losses, it amounts to nearly $284,000 with about $715,000 loaned out.
The third party to this conspiracy, Robert Keith Parker, pled guilty to the charge of making false statements to influence financial institutions connected with the loan. It was Parker and Webb who falsified income tax returns to be able to qualify Parker’s wife to get a loan from Southern Bank.
Nearly $5 million worth of losses have been reported last year by the New Century Bank in a different fraud case by its founding chair, Raymond Lee Mulkey Jr., where the bank lent their founder millions to operate finance companies that he owned.