Loan Processor Pleads Guilty To Fraud Conspiracy Charges

(Newport News) –


Chuck Rosenberg, United States Attorney for the Eastern District of Virginia, made the announcement after Boothe’s plea of guilty yesterday in a case pending before Senior United States District Judge Robert G. Doumar in Norfolk.


From in or about April 2005 through in or about May 2008, Terrance K. Boothe and Richard N. Garries, the co-defendant in this matter, worked in the residential mortgage brokering business. Garries worked as a mortgage loan broker / loan originator for Security First Funding Corp. (“Security First”). Boothe worked for Garries as a loan processor in Garries’ residence in Newport News, Virginia.


Additionally, Garries and Boothe were involved in the business of purchasing, renovating and then selling or “flipping” residential real estate. Garries and Boothe often arranged for the potential buyers of the subject properties to use Security First to obtain loan financing.


Investigation into various properties sold by or through Garries with the assistance of Boothe indicated that Garries and Boothe routinely caused the inflation of buyer income, bank account balances and the ability to be able to qualify for the loan approval on loan applications that were sent by facsimile and United States mail or private carrier to various mortgage companies.


Promises were made to the buyers of the subject properties, including that the properties had ready tenants and that the buyers would be provided with cash at the closings. After the sale of the properties, these promises were not kept and the unqualified buyers were often unable to keep up with the mortgage payments. As a result, a number of properties experienced foreclosure by the mortgage lenders.


Terrance K. Boothe is scheduled to be sentenced on November 3, 2008. He faces a maximum term of imprisonment of twenty years, followed by three years of supervised release, and full restitution. The investigation was conducted by the United States Secret Service, the Internal Revenue Service – Criminal Investigation Division, and the Newport News Police Department. Assistant United States Attorney Brian J. Samuels prosecuted the case for the United States.


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Terrance K. Boothe, age 44, of Suffolk,  pled guilty to Conspiracy to Commit Mail and Wire Fraud, in connection with a scheme to commit mortgage fraud by fraudulently obtaining mortgage loans for unqualified applicants.

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Published on 16/08/2008 21:27:47