Last of 7 pleads guilty in mortgage scam

Federal prosecutors said the last of seven people accused of participating in a $2.5 million mortgage scam in Michigan has pleaded guilty.
AP Wire
Nov 27, 2012

 

The government says 43-year-old Mario Giannandrea made the plea Monday before U.S. District Judge Robert Jonker in Grand Rapids.

Sentencing on the fraud conviction is March 27, 2013.

The seven people were indicted July 26, 2012, on accusations of engaging in a scheme to commit mortgage fraud.

The Justice Department says the seven operated under the name of Lansing-based CDC Investments. The government says they inflated the value of pieces of real estate and then staged sales of the properties so that unsuspecting banks would supply mortgages.

The government says the scheme resulted in about 35 mortgages and $2.5 million in losses.

 

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