Accountant Convicted in Multi-Million-Dollar Mortgage Fraud Scheme
| U.S. Attorney’s Office March 25, 2010 |
ALEXANDRIA, VA—A federal jury today convicted Lloyd Mallory, 48, of Silver Spring, Md., for his role in helping to carry out a multi-million-dollar mortgage fraud scheme.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Shawn Henry, Assistant Director in Charge of the FBI Washington Field Office, made the announcement after the verdict was accepted by United States District Judge T.S. Ellis, III.
Mallory was convicted of conspiracy and mail fraud and faces a maximum penalty of 20 years in prison on each count when he is sentenced on June 11, 2010.
According to court records and evidence at trial, Mallory was a self-employed Certified Public Accountant who conspired with Michael Milan, 49, of Bethesda, Md., and others to defraud mortgage lenders into lending funds for the purchase and refinance of residential properties. Mallory created false tax returns in the names of Milan’s clients which listed inflated income amounts. These false documents were submitted to banks to back up false claims made in the mortgage applications prepared by Milan and his associates. Milan’s conspiracy defrauded lenders through at least a dozen real estate transactions and caused losses of more than $2.5 million.
Mallory is the seventh defendant convicted by the investigation, which remains ongoing. Others convicted include a settlement agent, a loan officer who worked with Milan, and Milan’s son, Dustin Milan.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Edmund P. Power and Stephen P. Learned prosecuted the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.usdoj.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pacer.login.uscourts.gov.