Mortgage Daily Logo

3 Women Sentenced In Peoria Scam

Mortgage News

Three Peoria, Illinois women have been sentenced for their involvement in a mortgage loan scam where they defrauded a bank of $1.7 million in a classic flip transaction scheme. Another defendant, an appraiser, was sentenced earlier this month in the case.

The story begins in 1996, according to an account of the case from the U.S. Attorney’s office. Laurie E. Hensley, 37, worked as a loan officer for First Financial Bank — which later changed its name to Associated Bank. Hensley, who was later promoted to branch manager at the bank, would assist buyers with mortgage loan applications.

Hensley, along with two other defendants — Lorri L. Brown, 43, and Patricia J. Truckenbrod, 47 — would typically purchase a property and resell it shortly thereafter to would-be renters at much higher prices.

Prospective renters of the properties were told that they could actually buy the homes with no money down and a mortgage payment that was no more than the rent. While renters indicated they could not afford a home or had bad credit, Hensley used false documentation to secure approvals. Among the false documents were copies of checks to be used for down payment. The three defendants bought checks for the buyers, photocopied them for the loan file, then returned the funds to their own accounts.

The defendants reinvested proceeds from these transactions in more similar transactions.

First Financial Bank officials realized in December 1997 that a high percentage of loans originated by Hensley became delinquent shortly after closing. A bank committee later determined that the loan files were fraudulent.

Hensley left the bank in August 1998.

The three women pleaded guilty to charges in February of this year. They were sentenced earlier this month, with Hensley receiving a 46 month sentence and restitution ordered at more than $500,000.

The Journal Star reported that all three defendants sobbed at the sentencing, with Hensley sobbing loudest and begging for mercy.

Sharon Paul, from the U.S. Attorney’s office in Springfield, Illinois, told MortgageDaily.com that another defendant, Donald L. Williams, was also sentenced earlier this month to 46 months in prison and more than $300,000 in restitution. Williams was the appraiser in the transactions.

Related Posts

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

There is No Such Thing as a Free House …

Over the past several years, those who service loans in the State of Washington(1) have seen a dramatic rise in the number of lawsuits in which delinquent borrowers seek to quiet title to their homes on the grounds that lenders are barred from foreclosing based on...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

The Mortgage Graveyard 2018 Archives

The Mortgage Graveyard 2018 Archives Failed, Struggling and Acquired Mortgage-Related Companies Non-Bank Closures 3 Bank Failures (FDIC) 0 Credit Union Failures 0 Total Mortgage-Related Failures 3  

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

MBS Statistics

MBS Statistics Non-Agency Issuance 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 Private Label RMBS Issuance (S&P) $80 billion to $100 billion (est) $70 billion $34...

NewDay USA CEO Rob Posner Expects 10% Increase in 2019 Mortgage Loan Volume

Sample E-Mail

Sample E-Mail   Covering the Real Estate Finance Since 1999  Mortgage Industry News free news content | view headlines online  Advertorial Text Ad This ad includes a linked bold headline of up to 50 characters and up to 100 words of text. The ad can be...

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI