Ex-loan sentenced to prison for 12 years for scheme
May 2, 2013 7:06PM
A Chicago man was sentenced to more than a dozen years in prison Thursday for a mortgage fraud scheme involving 65 properties, most in poor South Side neighborhoods.
U.S. District Judge Ronald Guzman sentenced Fred Haywood, 42, to 151 months in prison and ordered him to pay $1.4 million in restitution, according to the U.S. Attorney’s office.
The former loan officer was part of a group of people who engaged in a mortgage fraud scheme involving South Side properties that netted him more than $700,000.
Haywood worked as a loan officer or processor at several mortgage brokerages between 2001 and 2007, the U.S. Attorney’s office said. During that time, he fraudulently qualified borrowers for loans based on false information about their income, assets, employment and intent to occupy the property.
Haywood and his co-defendants recruited buyers with good credit but not enough income to qualify for mortgages, to purchase properties by promising to pay them for putting their names on the properties, which were often in “economically-depressed neighborhoods,” according to the U.S. Attorney’s office. The buyers had no intention of living in the properties or fulfilling any of the long-term payment obligations.