Wednesday, February 22, 2012

Homeowner Cops Guilty Plea To Forging Document Purporting To Release $256K Federal Tax Lien Encumbering Property In Effort To Pocket 2nd Mortgage Cash

From the Office of the U.S. Attorney (Beckley, West Virginia):

  • A Rocky Gap, Virginia woman pleaded guilty [] in federal court [...] to mortgage fraud. Janet Damewood, 60, admitted that in February 2007, she applied for a second mortgage from CitiFinancial, Inc. (now known as OneMain Financial, Inc.) on a home she owned in Princeton, West Virginia.

  • At the time the defendant applied for the mortgage, the Internal Revenue Service (IRS) had filed a $256,000 Federal Tax Lien at the Mercer County Courthouse against the property for Damewood’s failure to pay back taxes.

  • Damewood admitted that she did not disclose the Federal Tax Lien, which was later discovered by CitiFinancial during the underwriting process. Damewood further admitted that she created a false and fraudulent document which claimed to be a release of the Federal Tax Lien.

  • The defendant subsequently provided the false document to CitiFinancial as proof that the lien had been released. Based on her false representations, CitiFinancial funded a $37,000 loan to the defendant.

For the U.S. Attorney press release, see Virginia Woman Pleads Guilty to Mortgage Fraud.

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