MortgageReverse

Two Sentenced to Federal Prison in $2.5 Million Reverse Mortgage Scheme

Two defendants in a reverse mortgage scheme that totaled $2.5 million in fraudulent transactions were sentenced this week to serve time in federal prison.

Former loan officer Marcos Echevarria, of Palm Beach, has been sentenced to 24 months in prison followed by five years of supervised release; and former title agent Kimberly Mackey, of Pittsburgh, has been sentenced to 60 months in prison with five years of supervised release.

Additionally, $1.65 million of restitution was ordered.

The defendants were sentenced in U.S. District Court under Judge William P. Dimitrouleas.

The scheme, which defrauded reverse mortgage borrowers, Genworth Financial Home Equity Access and the Federal Housing Administration, involved two additional defendants who have yet to appear for sentencing. According to prosecutors in the case, Genworth approved and the FHA insured more than $2,572,813 in reverse mortgage loans based on false documentation.

“To perpetuate the fraud, the defendants engaged in a loan modification scheme to conceal the existence of the Genworth reverse mortgage transactions from the original mortgage lenders, whose loans remained unpaid,” according to a statement from the Southern District Court of Florida.

Written by Elizabeth Ecker

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