A mortgage broker pleaded guilty for his role in a mortgage fraud scheme that authoities allege resulted in $2 million in losses.  Federal agents claim mortgage broker Justin Zhu conspired  with real estate broker Darnell Mason to recruit straw borrowers for San Antonio homes used in the scheme that used fraud to induce loans.

Zhu was scheduled for trial Monday but instead pleaded guilty to two counts of wire fraud at a hearing Friday before senior U.S. District Judge harry Hudspeth.  Zhu admitted helping Mason concoct a scheme that exploited 100 percent financed state income loans, which require no down payment and do not require the lender to verify the applicant’s income according to Zhu’s plea agreement.

The straw home buyers were paid up to $3k in kickbacks for signing their names on loan paperwork for 17 properties whose loans were later allowed to go into default, court records said.  The scheme was uncovered by the FBI and Internal Revenue Service during Operation Stolen Dreams, which is a national crackdown on mortgage fraud.

Mortgage fraud will land you in federal prison for many years, if you or a family are facing criminal  allegations of mortgage fraud contact an experienced criminal defense lawyer immediately at (210)225-6600

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