Former Richmond-area branch manager for a 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 yesterday and faces a maximum of 360 years in prison and $5.25 million in fines if convicted. Her March 3 federal indictment was unsealed yesterday.

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 .