Home Louisville Press Releases 2011 Woman Sentenced for Mortgage Fraud Scheme in Lexington

Woman Sentenced for Mortgage Fraud Scheme in Lexington

U.S. Attorney’s Office October 14, 2011
  • Eastern District of Kentucky (859) 233-2661

LEXINGTON—A woman was sentenced today to 15 months in prison for offenses related to a mortgage fraud scheme she used to purchase two Lexington homes.

U.S. District Court Judge Karl Forester sentenced Brandy Hamilton, 36, for two counts of wire fraud. Judge Forester also ordered Hamilton to pay restitution in the amount of $91,000.

Hamilton previously admitted that she made false statements to lenders in order to obtain loans to purchase the two houses. In December of 2005, Hamilton falsely stated her income and her intentions to use the home, located on Columbia Avenue, as her primary residence in order to obtain a $375,000 loan. The house which is currently in foreclosure is now worth $325,000 creating a $50,000 loss for the lending company Wilmington Finance.

According to Hamilton’s plea agreement, she also arranged for alterations to occur to a close family member’s credit card debt to make the family member eligible to receive a loan to purchase a home on Oldham Avenue. In addition, Hamilton misled the lender by telling it that the property was selling for $285,000 when in reality the sale price was $225,000. Wilmington Finance lost $60,000 as a result of Hamilton’s misrepresentations.

Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky and Elizabeth A. Fries, Special Agent in Charge for the FBI jointly made the announcement today.

The investigation was conducted by the FBI. Brandon W. Marshall represented the U.S. Attorney’s Office in this case.

The investigation was conducted by the FBI. Brandon W. Marshall represented the U.S. Attorney’s Office in this case.