Mortgage Broker Guilty of Fraud Scheme

Michael Milan has pleaded guilty of conspiracy to commit wire and mail fraud and for his role in the execution of a multi-million dollar mortgage fraud scheme. The scheme used several mortgage broker companies that Mr. Milan was a consultant to.

Mr. Milan according to court documents conspired with other individuals to defraud mortgage lenders by submitting fraudulent mortgage applications and supporting loan documents which those lenders then approved loans for based on the documentation submitted. The transactions involved included purchase transactions and refinance mortgage transactions of residential properties.

Eleven residential properties were involved in the multi-million dollar case. The total losses to the mortgage lenders involved were over two million five hundred thousand dollars but less than seven million dollars.

Mr. Milan is one of six defendants convicted in the multi-million dollar case. The other five defendants include a settlement agent, other loan officers that Mr. Milan worked with and Mr. Milan’s son Dustin Milan.

Mr. Milan who is forty nine years of age is facing a maximum sentence of twenty years in prison in accordance to the crimes he was convicted of. He is scheduled to appear before the sentencing judge on February 12th of 2010.

Mr. Milan according to his plea agreement with the prosecution has agreed to forfeit over one million sixty one thousand eight hundred ninety dollars in proceeds he obtained by fraudulent means. He has also agreed to pay restitution in the amount of three million one hundred forty one thousand four hundred and nine dollars.