Wednesday, June 5, 2013

KCMO man sentenced in mortgage fraud case

U.S. Department of Justice

A Kansas City, Mo., man has been sentenced in a mortgage fraud case, U.S. Attorney Barry Grissom said today.

Michael D. Robinson, 36, Kansas City, Mo., was sentenced to a year and a day in federal prison. Robinson pleaded guilty to one count of conspiracy to commit mail fraud. In his plea, he admitted he conspired with others to provide false information to mortgage lenders.

Robinson admitted he purchased houses that were being foreclosed and then sold them to buyers at inflated prices. He bought and sold houses personally and through companies he established including The Atomic Group, LLC.

To advance the scheme and make sure buyers were approved for loans, Robinson gave buyers money for down payments to buy houses. He put money into a bank account in a buyer’s name to make it appear to the lender that the buyer had money to qualify for a loan. Robinson falsely stated that buyers had provided down payments.

In order to get the lender to approve loans at inflated prices, Robinson agreed with an appraiser who provided inflated appraisals based on false information. For instance, the appraiser falsely stated that improvements had been made when in fact very little work had been done.

Grissom commended IRS - Criminal Investigation, Housing and Urban Development - OIG, Assistant U.S. Attorney Chris Oakley and Assistant U.S. Attorney Jabari Wamble for their work on the case.