Four people have been indicted in an alleged multi-year mortgage fraud scheme that federal prosecutors say used fabricated employment, income and banking records to help unqualified borrowers obtain more than 20 home loans totaling approximately $7.3 million.
The U.S. Attorney’s Office for the Northern District of Texas announced the charges Monday, saying the alleged scheme involved Federal Housing Administration, Department of Veterans Affairs and conventional mortgage loans for properties in Texas and Oklahoma.
A federal grand jury indicted Shawna Randall, also known as Shawna Porter; Cleophus Turner; Julie Shoumbert; and Maurice Gardner on September 16.
All four defendants are charged with conspiracy to provide false statements to a mortgage lending business. Randall and Turner also face three counts each of fraud and false statements.
The charges are allegations, and the defendants are presumed innocent unless proven guilty in court.
Prosecutors Allege Fabricated Financial Records
According to the U.S. Attorney’s Office, the alleged conspiracy operated from June 2020 through November 2022.
Federal prosecutors allege Randall recruited borrowers who otherwise would not have qualified for mortgages and prepared or directed the preparation of fraudulent W-2 forms, pay stubs, employment verifications and bank statements.
Randall worked for a real estate broker during the alleged conspiracy, although her real estate license was inactive, according to prosecutors.
Turner worked as a mortgage loan officer at Verity Mortgage and allegedly submitted falsified documents as part of official mortgage applications despite knowing the information had been fabricated or altered.
Shoumbert and Gardner allegedly produced falsified bank statements for borrowers at Randall’s request. Prosecutors say the documents were later submitted to Eustis Mortgage Corporation, doing business as Verity Mortgage, as part of borrowers’ loan qualification files.
“These defendants allegedly conspired to corrupt the mortgage process by flooding lenders with fabricated finance and employment information to push through unqualified borrowers,” U.S. Attorney Ryan Raybould said in the DOJ announcement.
More Than $7.3 Million In Loans
Prosecutors allege the conspiracy resulted in more than 20 fraudulent mortgage loans totaling approximately $7,339,699.
The indictment describes numerous alleged acts involving fabricated employment documents and bank statements used to support loan applications in Texas and Oklahoma.
Some of the mortgages were insured by the Federal Housing Administration.
The U.S. Department of Housing and Urban Development has already paid more than $493,499 in partial FHA insurance claims stemming from loans connected to the alleged scheme, according to the Justice Department.
The alleged scheme also involved VA and conventional home loans.
Federal investigators say fraudulent applications involving government-backed mortgages can expose federal programs, and ultimately taxpayers, to losses when loans fail.
Federal Investigators Target Mortgage Fraud
The investigation was conducted by the Offices of Inspector General for HUD, the Department of Veterans Affairs and the Federal Housing Finance Agency.
“Stopping fraud in the VA Home Loan Program is not just about protecting resources — it’s about safeguarding the benefits that our veterans have earned,” VA Inspector General Cheryl L. Mason said in the federal announcement.
FHA mortgage insurance is intended to expand access to homeownership by protecting approved lenders against certain losses on qualifying mortgages.
The VA Home Loan Program similarly provides government-backed mortgage benefits to eligible veterans, service members and certain surviving spouses.
Defendants Face Potential Prison Terms
If convicted, Randall and Turner each face up to five years in federal prison on the conspiracy charge and as many as 30 years on each of their three fraud and false-statement counts, according to the U.S. Attorney’s Office.
They could also face fines and mandatory forfeiture.
Shoumbert and Gardner each face up to five years in federal prison on the conspiracy charge if convicted, along with potential fines and forfeiture.
Assistant U.S. Attorney Chad Meacham of the Northern District of Texas Fraud Section is prosecuting the case.
The indictment does not establish guilt. Prosecutors must prove the allegations beyond a reasonable doubt in court.
Provided by Dallas Express
