Former PA loan officer pleads guilty in scheme

United States Attorney Mary Beth Buchanan announced on August 6,2008, that Brian Tray, a resident of Pittsburgh, Pennsylvania, pleadedguilty in federal court to charges of Conspiracy, Bank Fraud and WireFraud.

Tray, age 52, pleaded guilty to four counts before United States District Judge Gary L. Lancaster.

Inconnection with the guilty plea, Assistant United States AttorneyBrendan T. Conway advised the court that Tray worked as a loan officerfor, among other places, America’s Mortgage Outlet and Single SourceMortgage.  In connection with numerous loans, Tray submitted loanapplications on behalf of borrowers that he knew contained falseinformation related to the borrowers’ income and financial condition. In addition, Tray submitted fraudulent documents to the lendinginstitutions, including fraudulent Verifications of Employment,Verifications of Rent, and appraisals.

Judge Lancasterscheduled sentencing for November 14, 2008.  The law provides for atotal sentence of 75 years in prison, a fine of $1,750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed isbased upon the seriousness of the offenses and the criminal history, ifany, of the defendant.

The Mortgage Fraud Task Forceconducted the investigation that led to the prosecution of Tray.  TheMortgage Fraud Task Force is comprised of investigators from federal,state and local law enforcement agencies and others involved in themortgage industry.  Federal law enforcement agencies participating inthe Mortgage Task Force include the Federal Bureau of Investigation;the Internal Revenue Service, Criminal Investigations; the UnitedStates Department of Housing and Urban Development, Office of InspectorGeneral; the United States Postal Inspection Service; and the UnitedStates Secret Service.  Other Mortgage Fraud Task Force members includethe Allegheny County Sheriff’s Office; the Pennsylvania AttorneyGeneral’s Office, Bureau of Consumer Protection; the PennsylvaniaDepartment of Banking; the Pennsylvania Department of State, Bureau ofEnforcement and Investigation; and the United States Trustee’s Office.

Mortgageindustry members with knowledge of fraudulent activity are encouragedto call the Mortgage Fraud Task Force at (412) 894-7550.  Consumers areencouraged to report suspected mortgage fraud by calling thePennsylvania Attorney General’s Consumer Protection Hotline at (800)441-2555.

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