Woman Sentenced For 11 Years For “Straw Buyer” Home Purchase Fraud Scheme

12 11 2008

Newby-Allen conducted a mortgage fraud scheme that siphoned millions of dollars in fraudulently inflated mortgage loans being provided to unqualified straw buyers, one of whom was her husband and co-defendant, Brinson Allen.

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 http://www.bizjournals.com/atlanta/stories/2008/11/10/daily21.html

Adriene Newby-Allen, 40, of Alpharetta, Ga., was sentenced late Monday to more than 11 years in federal prison for her role in a multi-million dollar mortgage fraud scheme.

Newby-Allen also must pay $5.3 million in restitution. She pleaded guilty in July 2008 shortly before trial.

From mid-2004 through March 2006, Newby-Allen conducted a mortgage fraud scheme that siphoned millions of dollars in fraudulently inflated mortgage loans being provided to unqualified straw buyers, one of whom was her husband and co-defendant, Brinson Allen. Her husband was found guilty of multiple charges relating to the scheme on July 30 by a federal jury after a 10-day trial and will be sentenced at a later date.

Newby-Allen inflated the sale prices of residential real estate and arranged for the submission of false loan applications, documents and other information to mortgage lenders to obtain loans for the unqualified straw buyers. When the loans closed, Newby-Allen and her co-conspirators received millions of dollars of the mortgage loan proceeds through Newby-Allen’s shell company, “Swiss Acquisitions,” by using misrepresentations about disbursements of the loan proceeds.

Newby-Allen personally received more than $1 million of the loan proceeds obtained in the fraudulent scheme.

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