Mortgage Banker Rose Shaw Sentenced to Prison for Fraud – Comments by Ethics Speaker Chuck Gallagher

January 17, 2008

As the housing market was booming in late 2005, Rose A. Shaw applied for a loan to purchase real estate in Missouri. The problem was – the date she submitted on the application for the loan was – well false – to say the least.

She submitted false information on the application:

  • She had false income records for 2005;
  • False financial statements for 2004;
  • A false federal income tax return for 2004;
  • She created a false bank account to inflate her purported monthly income

Based on the false information, she was granted a loan. But beyond her fraudulent actions above, Shaw also received monthly social security disability checks from January 1985 through March 2006. She claimed that she was mentally retarded and suffered from schizophrenia.

I think she was retarded, but not in a medical sense. Rather, she made choices that would eventually have a consequence. Operating as Rose Shaw Enterprises, LLC and Shaw Brokerage Real Estate Investment Firm, LLC, Shaw made more dumb choices that would have an ultimately negative effect than most of us could think of.

To top off her choices which would take her to prison, Shaw forged the signature of the Chief United States Bankruptcy Judge Barry Schermer’s signature.


So, forgery, social security fraud, and mortgage fraud combined earned Rose Shaw a place in Federal prison for 33 months. (The sentence was amazingly low considering the combination of the crimes). In addition to the prison sentence, Shaw was ordered to make mandatory restitution in an amount in excess of $225,000.

What are your thoughts on the sentence for Rose Shaw?

Business Ethics Speaker, Chuck Gallagher (See Demo Video on YouTube) signing off.