Real estate agent admits to defrauding Fannie Mae

by Francis Monfort13 Sep 2018

A Florida real estate agent has admitted to defrauding Fannie Mae by filing a fraudulent bankruptcy petition, according to US Attorney’s Office for the Middle District of Florida.

David Morgan pleaded guilty to one count of bankruptcy fraud.

As a licensed realtor, Morgan entered into a contract with a homeowner to sell a property in foreclosure. To prevent Fannie Mae from foreclosing on the property, Morgan devised and executed a bankruptcy fraud scheme.

Without the homeowner’s knowledge or consent, Morgan filed a fraudulent bankruptcy petition in the homeowner’s name just prior to the scheduled foreclosure sale date. As a result, the automatic stay provision of the bankruptcy code was invoked, preventing Fannie Mae from conducting the foreclosure sale and obtaining title to the property.

The fraudulent petition also allowed Morgan to continue efforts to sell the property to obtain real estate commissions.

Morgan faces a penalty of up to five years in federal prison. A sentencing date has not yet been set.


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