Home Phoenix Press Releases 2011 Former Loan Officer Pending Trial for Mortgage Fraud is Arrested on Additional Fraud Charges
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Former Loan Officer Pending Trial for Mortgage Fraud is Arrested on Additional Fraud Charges
Defendant Was Indicted in June 2010 for Role in $40 Million Mortgage Fraud Scheme

U.S. Attorney’s Office February 22, 2011
  • District of Arizona (602) 514-7500

PHOENIX—JaimeLee Lawler, also known as Paige Kinney, of Phoenix, was arrested by FBI agents on Friday and charged with bankruptcy fraud, mail fraud, and structuring financial transactions as part of a fraudulent bankruptcy, United States Attorney Dennis Burke announced today. Lawler, 42, is already pending trial on August 24, 2011, on a 30-count indictment charging wire fraud, conspiracy, money laundering, and conspiracy to commit money laundering related to her leadership role in a nearly $40 million mortgage fraud scheme.

Prosecutors allege in the recent complaint that Lawler also committed bankruptcy fraud in May 2010, when, after changing her name to Paige Kinney, she filed for bankruptcy under previous name Lawler. The complaint alleges that she hid assets and income from the bankruptcy court by putting them under the name Kinney and then failing to disclose them.

Prosecutors also allege that Lawler defrauded another mortgage loan company. After she was terminated from Countrywide Home loans in 2007, Lawler went to work for PRMI, a mortgage loan company based in Utah with a branch in Phoenix. There, the complaint alleges, she fraudulently billed PRMI for what she claimed were mortgage leads in the amount of $123,000. The complaint alleges that Lawler structured cash withdrawals of the proceeds from the PRMI fraud to avoid having the bank file a currency transaction report and draw attention to the funds.

A conviction for bankruptcy fraud carries a maximum penalty of five years in prison, a $250,000 fine, or both. A conviction for mail fraud carries a maximum penalty of 20 years in prison, a fine of $250,000, or both. A conviction for structuring financial transactions carries a maximum penalty of 10 years, a fine of $500,000, or both.

A complaint is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigations Division and the Federal Bureau of Investigation. The prosecution is being handled by Kevin M. Rapp and Monica B. Klapper, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER: CR-11-7092-PHX-ECV
RELEASE NUMBER: 2011-025(Lawler)

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