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Former Mortgage Broker Sentenced for Mortgage Fraud

U.S. Attorney’s Office January 06, 2011
  • Southern District of Iowa (515) 473-9300

DAVENPORT, IA—Natalie Long, age 35, of Leclaire, Iowa, a former mortgage broker with Crow Valley Mortgage in Bettendorf, IA, was sentenced by United States District Judge John A. Jarvey to five years probation, including eight months’ home confinement, in connection with Long’s previous guilty plea to two counts of wire fraud, announced United States Attorney, Nicholas A. Klinefeldt. Long also was ordered to pay $97,343 in restitution.

Long and another broker employed at Crow Valley Mortgage assisted Darryl Hannken and Robert Herdrich in a scheme to defraud mortgage lenders Argent Mortgage and New Century Mortgage in connection with loans to purchase two rental properties in Davenport, Iowa. Long and the other broker, aware that Hanneken and Herdrich would divert some of the loan proceeds to their own pockets without lender knowledge, facilitated the scheme by acting as broker for Herdrich and Hanneken. Long and the other broker also submitted false information concerning the income and financial assets of Herdrich and Hanneken in order to qualify them for the loans. Herdrich and Hanneken have each pleaded guilty to multiple bank fraud and wire fraud charges and are awaiting sentencing.

This fraud was uncovered as part of a broader investigation of fraudulent mortgage practices in connection with the purchases of dozens of rental properties in Davenport.

This case was investigated by the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office, Southern District of Iowa.

Mortgage fraud prosecutions remain a significant priority for both the United States Attorney’s Office and the FBI, which recently announced the creation of the Iowa Mortgage Fraud Working Group. The working group, which also includes the Iowa Attorney General’s office and other law enforcement agencies, will continue to identify and investigate targets for criminal prosecution in the Southern District of Iowa and perform other important functions in the fight against mortgage fraud.

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