Special offer

GRAND JURY INDICTS REAL ESTATE DEVELOPER AND MORTGAGE BROKER FOR FRAUD

By
Industry Observer TN LIC# 290452

Federal Grand Jury Returns Indictment Charging Individuals in Alleged Fraud Scheme

U.S. Attorney’s Office May 31, 2012
  • District of Utah (801) 524-5682
 
 

SALT LAKE CITY—A federal grand jury returned a 15-count indictment Wednesday afternoon charging Alan Prince, age 59, of Lehi; and Joseph Aldridge, age 50, of Draper, with conspiracy, bank fraud, and aggravated identity theft in connection with an alleged scheme to get construction loans from a financial institution using what the indictment alleges were materially false and fraudulent representations.

Prince, according to the indictment, was the owner of Prince Development LLC., a Utah real estate development company engaged in the purchase, building, and selling of homes.

Aldridge was a mortgage broker.

Prince is charged with conspiracy in the first count of the indictment for what the indictment alleges were efforts to get construction loans from Proficio Bank. At the time, Proficio Bank did not do lending in the speculative home building industry. To obtain money from the bank for construction loans, the bank required Prince to provide proof that buyers were prequalified to purchase the homes. The indictment alleges Prince represented to Proficio Bank that individual buyers had committed to purchase residential homes once construction on the homes was complete and that buyers were pre-approved for permanent financing.

The indictment alleges that as a part of the scheme, Prince or someone acting at his direction would contact mortgage brokers, including Aldridge, with requests for the brokers to provide purported buyers for the properties. Prince gave the brokers information about the properties, including the addresses, purchase prices, dates of the purported loan application, and often the amounts of the deposit or down payments. Using this information, the brokers would prepare a loan application using the name and information of a purported buyer and a letter signed by the broker stating that the purported buyer was pre-approved for long-term financing.

To prepare these documents, the indictment alleges Aldridge and others used the actual identification of former clients or acquaintances but altered and inflated the information about these individuals’ income and assets.

The information was used without the knowledge, authorization, or consent of the former clients.

The indictment alleges Prince or others acting at his direction paid the mortgage brokers approximately $500 for each set of purported buyer loan documents provided to them.

The indictment alleges that Prince submitted the fraudulent loan applications and pre-approval letters to the bank and the bank relied on the information in making lending decisions.

In addition to the conspiracy count, Prince is charged with seven counts of bank fraud and seven counts of aggravated identity theft in connection with the alleged scheme. Aldridge is charged with two counts of bank fraud and two counts of aggravated identity theft. The potential maximum penalty for the conspiracy count is up to five years in prison. Each count of bank fraud carries a potential 30-year sentence. The penalty for each count of aggravated identity theft is a two-year mandatory minimum sentence.

As a part of the case, federal prosecutors intend to seek a money judgment of $810,810 against Prince.

A summons will be issued to Prince and Aldridge to appear for an initial appearance on the charges. The case is being prosecuted by the U.S. Attorney’s Office in Utah and investigated by special agents of the FBI.

Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.

source: FBI
Posted by





Time&Temp Memphis

Legal Disclaimer
Please be advised that:

 The information and notices contained in this blog are intended to summarize recent developments and news. The posts are presented as general research and information. These posts are not intended, nor should be regarded, as legal advice. Some blog posts concern allegations made in civil lawsuits and in criminal indictments in United States Courts. All persons are presumed innocent until convicted of a crime and proven guilty. Readers who have particular questions or who believe that they need legal counsel should seek the advice of a qualified attorney. It is neither the editor's or author's intention to create a confidential relationship or any broker-client relationship via communication from this site at any time. Please consult with your state real estate board if questions & answers in the education section conflict with the laws of your region or if you need clarification regarding their applicability or how they may govern the services that you provide.

By entering this web site, you understand the following:
When you select a link to an outside Web site, you are subject to the privacy, copyright, security, and information quality policies of that Web site. David Saks:
1.DOES NOT control or guarantee the accuracy, legality, relevance, timeliness, or completeness of information contained on a linked Web site;
2.DOES NOT endorse linked Web sites, the views they express, or the products/services they offer unless linked web sites, the views they express, or the products/services they offer endorse or support David Saks in accordance with the standards of the Tennessee Real Estate Commission and the Federal Government's laws regarding commerce and the application, solicitation and transmission of internet-related concerns, commerce or social networking;
3.CANNOT authorize the use of copyrighted materials contained in linked Web sites;
4.IS NOT responsible for transmissions users receive from linked Web sites;
5. That DavidSaks.Com is biographical & real estate related. Some links within will leave this site.
6. http://activerain.com/profile/davidsaks is internet-compliant & abides by the rules & regulations of the Tennessee Real Estate Commission.
7. Unless indicated otherwise, ActiveRain does offer listings, or IDX and is provided for licensed salespersons, brokers, buyers & sellers of real property as a community & professional service.
8. David Saks is a retired / licensed real estate broker in the State of Tennessee, license #290452, and an independent contractor.
9. Information is believed to be accurate, but not guaranteed, at any realty link or document connected to the World Wide Web & viewable by anyone connected to the internet who has a web browser.
10. Brokers, buyers, sellers, agents & anyone should independently verify any information prior to submitting any offer to purchase goods & services from any link.
11. Please Visit The American Real Estate Alliance or Memphis.8k.Com for additional information regarding property issues for real estate professionals and consumers.

 

Photos © & Licensed by Nova Development

All Content Protected © 
Before you even think about
committing a real estate crime
click this red button.
Real Estate Crimes

© All Rights Reserved.

 

 

 

 

"Information generated by the Department of Justice is in the public domain and may be reproduced, published or otherwise used without the Department’s permission. Citation to the Department of Justice as the source of the information is appreciated, as appropriate."

Department of Justice Legal Policies


 

  Real Estate Crimes

Comments (0)