A Dorchester, MA mortgage broker who helped home buyers who were credit risks secure subprime loans has pleaded guilty to forgery, larceny, and other criminal charges, the Massachusetts Attorney General's office reported January 13, 2009.
Nicole Lyder, age 34, pled guilty to charges of forgery (6 counts), larceny of bank credit by false pretenses (5 counts), uttering a false document (6 counts), and making or publishing false or exaggerated statements (4 counts).
Following the change of plea to guilty, Suffolk Superior Court Judge Christine McEvoy sentenced Lyder to serve two years in the house of correction, committed, and two years in the house of correction, sentence suspended for three years and to begin from and after the committed time. Essentially, Lyder will be on probation for three years from the time she is released from jail.
Lyder was held for 285 days awaiting trial because she couldn't make bail, and now that she has pleaded guilty, she will be eligible for parole in approximately three months.
The government's investigation focused on mortgage loans that Lyder assisted home buyers in securing from Fremont Investment & Loan, Inc. The Massachusetts Attorney General's office sued the California company in 2007, alleging predatory lending practices. That case is still pending and the company denies the allegations.
In addition to her misconduct with respect to these subprime mortgages, Lyder also engaged in fraudulent activity in order to secure an automobile loan for a $63,000 Landrover that she purchased. In July 2007, Lyder submitted fraudulent bank statements to Sovereign Bank in order to secure financing for the vehicle by altering a bank statement belonging to one of her former mortgage clients, making it appear as if it were her own bank statement.
According to The Boston Globe, among Lyder's clients, one left a homeless shelter and two others gave up government-subsidized housing to buy homes. No word whether these home buyers will be prosecuted for their roles in obtaining these fraudulent loans. The clients later realized they could not afford their monthly payments and eventually had foreclosure cases brought against them.
Read The Massachusetts Attorney General's Office Press Release
Comments(3)