Investor Sentenced to 27 Months for Role in $4 Million Mortgage Fraud Scheme
|U.S. Attorney’s Office May 03, 2011|
PHOENIX—Dustin Thompson, 32, of Phoenix, was sentenced on Monday to 27 months in prison for his involvement in a $4 million mortgage fraud scheme. Thompson pleaded guilty to one count of conspiracy to commit wire fraud, a felony, related to his participation in a two-year conspiracy involving the purchase of 24 properties in Phoenix using fraudulent loan documents. One other co-conspirator was also charged and has pleaded guilty.
“Driven by greed, this defendant schemed the system and engaged in the type of mortgage fraud that has destroyed property values, lending institutions, and entire neighborhoods in our community,” said U.S. Attorney Dennis K. Burke. “This office, along with our partners in the FBI and IRS, is committed to prosecuting those who engage in mortgage fraud and putting them in prison.”
The case against Thompson was based on an investigation by the Internal Revenue Service and Federal Bureau of Investigation. Investigators discovered that from 2005 through June of 2007, Thompson conspired to commit mortgage fraud by submitting fraudulent mortgage loan applications on behalf of straw buyers, under false pretenses. He obtained and disbursed the proceeds of the fraudulently obtained loans, including directing $1.2 million of the proceeds to a bank account under his control. Thompson used the proceeds from the fraud for personal expenses and to finance other “get rich” schemes. Thompson received a reduced sentence due to his early guilty plea and cooperation. The entire conspiracy resulted in a loss to lending institutions of approximately $4 million.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution is being handled by Kevin M. Rapp, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-09-00386-PHX-ROS
RELEASE NUMBER: 2011-080(Thompson)