Former San Francisco Resident Sentenced to 20 Months in Prison for Role in $3.43 Million Mortgage Fraud Scheme

SAN FRANCISCO, CA—Kevin Derricott was sentenced yesterday to 20 months in prison for his role in a scheme to defraud lenders out of millions of dollars, United States Attorney Melinda Haag announced.

On February 19, 2013, Derricott pleaded guilty to conspiracy to commit wire and bank fraud and bank fraud. According to the plea agreement, from about February 2006 through December 2008, Derricott conspired with others to submit mortgage applications to various lenders that contained materially false information about the borrower-applicants, such as inflated salary figures, inflated assets claims, or false employment information, in order to trick the lenders into making loans. Derricott also recruited borrower-applicants, procured false supporting documentation for loan applications, and submitted fraudulent loan applications to lenders in exchange for a portion of the fraudulent proceeds.

Derricott, 40, of Rocklin, California, was charged on December 15, 2011, by the grand jury with conspiracy to commit bank and wire fraud, in violation of Title 18 USC Section 1349, and bank fraud, in violation of Title 18 USC Section 1344. He pleaded guilty to all counts in the indictment. The Honorable William H. Alsup, U.S. District Court Judge, imposed the sentence. Judge Alsup ordered Derricott to serve three years of supervised release following his imprisonment, with the special condition of 16 months’ home confinement, and ordered him pay restitution of $3.43 million.

Kathryn Haun is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Daniel Charlier-Smith. The prosecution is the result of an investigation by the FBI and IRS-CI.