According to court documents and statements made in court, in 2006 and 2007, Kinney participated in a mortgage fraud conspiracy by acting as the settlement agent in connection with fraudulent real estate transactions in New London County, Connecticut.
As part of the scheme, Kinney submitted, or caused to be submitted, materially false HUD-l settlement statements to lenders.
In certain cases, Kinney released a disbursement check before he had received the down payment listed on the HUD-1.
On November 5, 2007, in connection with the investigation of this matter, Federal Bureau of Investigation special agents served Kinney a subpoena at his New Haven office. On that date, Kinney told agents that he had never given anyone a closing check prior to receiving the down payment money in connection with real estate closings that he handled when, in fact, he had done so on multiple occasions.
Judge Covello has scheduled sentencing for February 22, 2012, at which time each defendant faces a maximum term of imprisonment of 10 years.
David B. Fein, United States Attorney for the District of Connecticut, announced the guilty plea.
This case is being investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General. The case is being prosecuted by Assistant United States Attorney Michael S. McGarry and David T. Huang.
The Connecticut Mortgage Fraud Task Force includes representatives from the U.S. Attorney’s Office; Federal Bureau of Investigation; Internal Revenue Service – Criminal Investigation; U.S. Postal Inspection Service; U.S. Department of Housing and Urban Development, Office of Inspector General; Federal Deposit Insurance Corporation, Office of Inspector General, and State of Connecticut Department of Banking.
Courtesy Mortgage Fraud Blog