2 Va. men plead guilty in mortgage fraud scheme

Two Lynchburg men have pleaded guilty to participating in a mortgage fraud scheme that cost lenders at least $7 million.

 

U.S. Attorney Timothy J. Heaphy says 38-year-old Timothy Scott Brooks and 32-year-old Adam Nash Spruill each pleaded guilty Tuesday to federal charges of conspiracy to commit bank fraud, mail fraud, wire fraud, fraud by false statements on loan and credit applications and conspiracy to commit laundering of monetary instruments.

 

Heaphy says the pair used straw buyers to fraudulently obtain mortgages on properties in the Moneta area near Smith Mountain Lake. The scheme cost financial institutions between $7 million and $20 million.

 

Each defendant faces up to five years in prison. A sentencing hearing is set for Sept. 10.

 

Published on 17/06/2010 09:38:49