"Escrow Officer Acts As Straw Buyer." The story provided the details of a mortgage fraud scheme which resulted in $3.9 million in losses to three different banks.
Four people were indicted including the escrow officer, Sandra Jackson, who closed most of the fraudulent deals. She was even brazen enough to act as a straw buyer – three times! Since then she has entered into a plea agreement and has now been sentenced.
In September of 2011 four people in Tucson were all indicted for their role in a multi–million dollar mortgage fraud scheme. One of the conspirators was an escrow officer, Sandra Jackson. By March 2013, Jackson and her co–conspirators pled guilty on these charges:
- Conspiracy to commit bank fraud and conspiracy to commit money laundering
- Conspiracy to commit wire fraud
- Conspiracy to commit bank fraud and conspiracy to commit transactional money laundering
- Conspiracy to commit wire fraud
Part of Jackson's guilty plea included admitting she knew at least one or more material misrepresentations were provided as part of her loan application for three new loans she used to purchase three properties. She defaulted on all three of the loans resulting in financial losses to the lenders since they were ultimately forced to foreclose on the properties.
On August 9, 2013 Jackson was sentenced to six months in federal prison and ordered to pay about $480,000 in restitution.
As if the very thought of going to prison is not chilling enough, once released she will have a hefty lien hanging over her head, which might affect her ability to get a job, buy a home or obtain credit.
Restitution is reimbursement for economic loss to the victims who suffered financially as a result of the crime committed. On April 24, 1996 Congress made restitution mandatory for many types of federal crimes. When a defendant has been convicted the judge may impose as a part of the sentence an order for some or the entire fine imposed to be allocated for restitution.
The Financial Litigation Unit (FLU) of the U.S. Attorney's Office, is charged with enforcing orders of restitution. They file a lien on behalf of the United States for the purpose of recovering restitution against the convicted person. FLU pursues the enforcement of the order to pay restitution for 20 years from the filing date of the Judgment, plus the time period of actual incarceration or until the defendant dies.
In addition, the victim might also choose to request the U.S. Clerk of Court to issue an Abstract of Judgment certifying a judgment has been entered in his/her favor. The victim might then record the Abstract of Judgment in any county within the state which the defendant was convicted and believed to have assets. Once it is recorded, it becomes a lien upon the property of the defendant in that county. The feds might also garnish the wages of the defendant.
Once Jackson is released from serving her six months in federal prison, she will be faced with her responsibility to pay restitution. It will surely be an uphill battle since she lost her job with us. Now she is a convicted criminal and finding a replacement career will be difficult, to say the least. She also has 480,000 reminders of why crime does not pay.
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