Delaware Man Pleads Guilty to Conspiring to Commit Bank Fraud
|U.S. Attorney’s Office December 01, 2010|
NORFOLK, VA—Michael Schmuff, 40, of Wilmington, Deleware, pled guilty today in Norfolk federal court to one count of conspiring to commit bank fraud.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller. Schmuff will be sentenced on February 24, 2011, and faces up to 30 years in prison.
According to court documents, Schmuff was involved in a conspiracy to commit mortgage fraud on various properties located in the Cape Charles area of the Eastern Shore of Virginia. The court records indicate Schmuff aided his fellow co-conspirators obtain mortgage financing by providing materially false and fraudulent information to mortgage lenders regarding down payments, income, assets, and liabilities on mortgage loan applications. In exchange, Schmuff received cash payments from his co-conspirators. On one occasion in January 2008, Schmuff received a payment of $10,000, the court records state. Because of Schmuff’s actions, his co-conspirators obtained mortgage loans valued in excess of $1,688,000.
This case was investigated by the Federal Bureau of Investigation, the United States Secret Service, and Virginia State Police. Assistant United States Attorneys Robert J. Seidel, Jr. and Joseph L. Kosky are prosecuting 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://pcl.uscourts.gov.