Member of $19 Million Mortgage Fraud Scheme Sentenced to More Than Three Years in Prison
|U.S. Attorney’s Office October 30, 2009|
BALTIMORE, MD—U.S. District Judge J. Frederick Motz sentenced Terrence White, age 35, of Oxon Hill, Maryland, today to 42 months in prison, followed by three years of supervised release for mail fraud arising from the fraudulent purchase of 25 properties in Maryland, the District of Columbia and Virginia using false mortgage and settlement documents, announced United States Attorney for the District of Maryland Rod J. Rosenstein. Judge Motz also entered a restitution order against White in the amount of $4,196,967.
According to his plea agreement, White, Timothy Reed, Osman Al-Bari, and others paid over 15 straw purchasers $10,000 per property to purchase houses for White and others. White created false mortgage and settlement documents, many of which misrepresented the straw purchasers’ income and assets. White, Reed, and Al-Bari also created false invoices to claim that their company, Brotherly Investment Group, performed “renovations” on some of the properties. Using these false invoices, White and his co-conspirators were “repaid” at closing for the purported renovations.
This scheme involved fraudulent loans worth over $19,021,366. Over 10 individuals and banks were harmed. The loss amount foreseeable to White is between $2.5 and $7 million. Many of the purchased properties have been foreclosed upon.
Kara McIntosh, age 47, and Sabrina Weinberg, age 44, both of Bethesda, Maryland, were sentenced to three years and two years in prison, respectively, for mail fraud. Osman Sharrieff Al-Bari, age 35, of Washington, D.C., was sentenced to 78 months in prison. Jamilah Al-Bari, age 37, of District Heights, Maryland, and Timothy Reed, age 44, of Beltsville, have pleaded guilty to mail fraud in connection with their participation in this scheme and are scheduled to be sentenced in the next two months.
This prosecution has been brought as part of the Maryland Mortgage Fraud Task Force, a group of more than 15 federal, state and local law enforcement agencies in Maryland. The Task Force was formed to promote the early detection, identification, prevention, and prosecution of various kinds of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of Maryland’s law enforcement agencies to protect consumers from fraud and help to ensure the integrity of the mortgage market and other credit markets. Information about mortgage fraud prosecutions is available on the Internet at http://www.usdoj.gov/usao/md/Mortgage-Fraud/index.html.
United States Attorney Rod J. Rosenstein thanked the U.S. Postal Inspection Service, the Federal Bureau of Investigation, the Montgomery County State’s Attorney’s Office - Economic Crimes Unit and the U.S. Secret Service for their investigative work and assistance. Mr. Rosenstein commended Assistant United States Attorney Kwame J. Manley, who prosecuted the case.