Real estate investor Brian Frank and mortgage broker Linda Defeo have been given prison sentences and ordered to pay restitution after pleading guilty for their roles in a mortgage fraud scheme.

The scheme involved fraudulent documents used to defraud homeowners and mortgage lenders in real estate transactions involving 26 distressed properties in the Greater Boston area, according to Attorney General Martha Coakley’s office.

Frank pled guilty to charges of larceny over $250 (78 counts), making or publishing false or exaggerated statements (26 counts) and attempting to make or publish a false or exaggerated statement (two counts), according to a statement. He was sentenced to serve two and a half years in the house of correction and must also pay $250,000 in restitution to the homebuyer victims.

Defeo pled guilty to charges of larceny over $250 (10 counts), making a false or exaggerated statement (six counts) and attempted larceny over $250. She was sentenced to one year in the house of correction and must pay $100,000 in restitution to the homebuyer victims.

Mortgage Broker, Real Estate Investor’s Mortgage Fraud Scheme Earns Them Jail Time

by Banker & Tradesman time to read: 1 min
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