Browning Real Estate School Presents: FLORIDA MAN SENTENCED TO 75 MONTHS IN FEDERAL PRISON

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FLORIDA MAN SENTENCED TO 75 MONTHS IN FEDERAL PRISON FOR

 

BANK FRAUD, MONEY LAUNDERING, AND ID THEFT

  

WASHINGTON, DC - Christy Romero, Special Inspector General for the Troubled Asset Relief Program

 

(SIGTARP), and Pamela C. Marsh, United States Attorney for the Northern District of Florida, today

 

announced that Lawrence Allen Wright, 46, of Niceville, Fla., was sentenced on Tuesday by Senior

 

Federal District Court Judge Lacey A. Collier to 75 months in federal prison and ordered to pay more

 

than $3.7 million in restitution.

 

Wright’s sentence is a result of his guilty plea last October to a seven-count Information charging: one

 

count of conspiracy to commit bank fraud, one count of conspiracy to commit money laundering, two

 

counts of bank fraud, one count of mail fraud, one count of aggravated identity theft, and one count of

 

making a false statement to a federally insured financial institution.

Leg_chain : Business worker with ball and chain attached to foot Stock Photo  

 

“For his crimes and for defrauding one bank while it held TARP funds and two other banks that later

 

needed TARP investments, Wright will spend the next six years in federal prison,” said Christy Romero,

 

Special Inspector General for TARP (SIGTARP). “Wright recruited straw borrowers to purchase

 

properties funded by mortgage loans from Countrywide Home Loans - later TARP recipient Bank of

 

America - obtained by submitting false information and inflated income estimates on loan applications.

 

The properties later fell into default because payments were not being made on the mortgage loans.

 

Wright defrauded Regions Bank, which later received TARP, when he caused others to forge his ex-wife’s

 

signature on various documents that were then used to obtain a mortgage loan from the bank. Wright

 

defrauded Gulf South Private Bank, another eventual TARP recipient, when he submitted a HUD-1 form

 

with an inflated payoff estimate to the bank for a property he was purchasing, in order to obtain a larger

 

loan for the property which enabled Wright to pocket nearly $200,000. When Gulf South later failed,

 

taxpayers lost their entire $7.5 million TARP investment in the bank and nearly $500,000 in past-due

 

dividends. Fraud perpetrated against a TARP bank is fraud perpetrated against the federal taxpayers

 

who funded the TARP bailout? SIGTARP and our law enforcement partners will ensure that justice is

 

served for those guilty of crimes against TARP.”

In pleading guilty, Wright admitted to conspiring with other individuals to commit bank fraud and

 

money laundering. As a part of that scheme, Wright solicited individuals to act as straw buyers to

 

purchase unimproved lots located in Walton County, Fla., using loans from Countrywide, so Wright

 

could build homes on the lots. While soliciting the straw buyers, Wright promised to make payments on

 

the fraudulent loans and pay the earnest money deposit and closing costs for the straw buyers. Wright

 

told the straw buyers that he would be able to sell the properties for a profit after he built homes on

 

them and that he would then share a portion of the proceeds with the straw buyers.

 

Page 2 of 2

California Prisons 

In addition to the conspiracy charges, Wright pleaded guilty to defrauding Regions Bank, Beach

 

Community Bank and Gulf South Private Bank. Three of the counts concerned Wright causing another

 

Individual to sign his ex-wife’s name on legal documents without his ex-wife’s knowledge or permission.

The legal documents included mortgage loan documents, promissory notes, and tax returns.

In September 2009, GulfSouth Private Bank received $7.5 million in federal taxpayer funds through the

 

U.S. Department of the Treasury Troubled Asset Relief Program (TARP). On October 19, 2012, GulfSouth

failed and was closed by state and federal regulators. As a result of the bank’s failure, the $7.5 million in

TARP funds was lost, in addition to nearly $500,000 in missed dividend and interest payments owed by

 

the bank as a result of holding TARP funds.

 

In total, Bank of America received $45 billion in TARP funds. The TARP funds were repaid in full in

 

December 2009.

 

In November 2008, Regions Financial Corporation, the parent company of Regions Bank, received $3.5

 

billion in TARP funds. The TARP funds were repaid in full on April 4, 2012.

 

This case was investigated by SIGTARP, Internal Revenue Service - Criminal Investigation, Federal

Deposit Insurance Corporation - Office of Inspector General, and the Okaloosa County Sheriff’s Office as

  

part of the Northwest Florida Financial Crimes Task Force.

 

This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers.

This prosecution was brought in coordination with President Barack Obama’s Financial Fraud

Enforcement Task Force, which was established to wage an aggressive and coordinated effort to

 

investigate and prosecute financial crimes. SIGTARP is a member of the task force. To learn more about

the President’s Financial Fraud Enforcement Task Force, please visit www.StopFraud.gov.

Prison Officer in the Rotunda

 

IF YOU LIKE OUR POST, PLEASE LIKE IT ON FACEBOOK AND LINKEDIN, THANK YOU, JAMES

 

Posted by

James A. Browning MRE, CIPS, CDEI, REOCertified®, CEC, BPOR, ShortSaleCertified®, SFR

NAR, ABR, REBAC, CAR, CREOBA, REO Institute, National Speaker/Educator

CEO, Founder, REO Institute

Author, Best Selling: BPO & REO Simplified, "How to Work With Asset Managers"!

Office: 303-465-2889

Cell: 303-668-7053

Fax: 303-465-3778

Re1agent@aol.com

www.BrowningRealEstateSchool.com

www.REOInstituteColorado.com

 

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Rainmaker
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David Shamansky
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Here is what I dont understand. Fraud is wrong and it IS prosecuted and we see this almost daily if not for sure weekly yet others think they can get away with it??? WOW

Jan 16, 2014 10:51 AM #1
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