Kyle Wimmer of Rock Hill, South Carolina was sentenced in Federal Court for bank fraud and money laundering to 63 months in federal prison and was ordered to pay $4 million in restitution.
A quote from the mortgage fraud blog follows: “According to the Indictment and evidence presented in court established that Wimmer devised a real estate investment scheme to defraud his investors and upstate lending institutions. Wimmer recruited investors to purchase distressed houses that he promised would be fixed up and rented. He then inflated investors’ financial information to make them appear more creditworthy than they really were, in an effort to qualify them for mortgage loans from banks to purchase the investment properties. At the same time, Wimmer grossly inflated the value of the investment properties, so that banks would lend more money than the properties were actually worth. Wimmer then skimmed profits from each deal, failing to repair or rent the properties as he promised. As a result, Wimmer was able to fraudulently obtain over $4 million dollars in illicit profits.”
According to the FBI’s list of typical fraud schemes, Wimmer used several to perpetrate his fraud. Backward Application: Wimmer fraudulently created fake income designed to meet the lenders loan criteria. Nominee Loan: Wimmer used outside borrowers to conceal his identity and hence his fraud.
The FBI states, “Mortgage Fraud is one of the fastest growing white collar crimes in the United States. Mortgage Fraud is defined as a material misstatement, misrepresentation, or omission relied upon by an underwriter or lender to fund, purchase, or insure a loan.”
Every choice has a consequence.
Having suffered the consequences of bad choices, I can say that Wimmer will find his stay in prison eye opening. Having lost everything, Wimmer will get a chance to reflect daily on this seveal year stint of fraud.
Speaking from experience it isn’t worth it. YouTube When he first walks into federal prison, goes through processing and is escourted to his cell…he’ll being a soul searching process of understanding that crime doesn’t pay.
Mortgage fraud is rampant. If you have been a victim…your comments are welcome. Likewise, if you’ve been punished for such crimes – share your experience.
Business Ethics Speaker – Chuck Gallagher signing off…