Richmond-area branch manager for mortgage firm charged in fraud
A former Richmond-area branch manager for a mortgage firm has been charged with defrauding five mortgage companies and investors of up to $1.4 million.
Stacy Lynn Chamberlain, 42, of Unionville has been charged with bank fraud, 18 counts of wire fraud and interstate transportation of money taken by fraud.
Chamberlain was arrested today and faces a maximum of 360 years in prison and $5.25 million in fines if convicted. Her March 3 federal indictment was unsealed today.
It alleges that in early 2004, Chamberlain was a branch manager for the Richmond Branch of Gateway Funding Diversified Mortgage Services of Horsham, Pa., and planned to buy a $489,900 house in Maryland without putting any money down.
That required her to obtain a first mortgage loan for $440,910 and a second mortgage loan for $48,990. Because her credit was allegedly bad, she could not qualify for such loans, so she allegedly used a straw purchaser.
The indictment alleges that the straw purchaser also had financial difficulties and could not qualify for the loans either, so Chamberlain created fraudulent income and employment information for the straw purchaser enabling the loan.
Shortly after the loans were made to Chamberlain, she stopped making monthly payments, and the loans went into foreclosure, say authorities.
The indictment also alleges that in order to obtain employment and partnership relationships in the mortgage field, Chamberlain misrepresented her academic credentials and previous loan production and performance levels.
Relying on these misrepresentations, the employers entered into contracts with Chamberlain and provided her with substantial funds. The total loss was estimated to be $1.4 million from five mortgage companies and various investors.
The case is being investigated by the FBI's Charlottesville Division and the Virginia State Police. David T. Maguire, an assistant U.S. attorney is prosecuting the case.
Contact Frank Green at (804) 649-6340 or .
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Reader Reactions
Maybe THIS is the problem with mortgages—insiders taking the company for a ride at their expense!
If we can catch up with these folks, it may wipe out the mortgage defaults.
Good thought, but wishful thinking
Richmond Branch of Gateway Funding Diversified Mortgage Services SHAME ON YOU! Too cheap to verify this employee’s credentials and employment record prior to hiring her. One would think you would make future employees submit a credit report PRIOR TO BEING HIRED. If they can’t manage their own funds then how do you think they are going to handle others.
You better be looking for the the impact to trickle down with others on the inside. Possibly your personnel department was in on it… the old friend of a friend… “I will get you a job.“
OR MAYBE you too are asking for part of the Great Stimulus Package to bail you out and are not in the least bit worried about the REAL working people who put trust in your organization.
The banking and mortgage companies seem to be producing a lot of stink in the public eye and the stock market.
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