Our network

2 Md. residents plead guilty in mortgage fraud scheme | News

Title (Max 100 Characters)

2 Md. residents plead guilty in mortgage fraud scheme

GREENBELT, Md. (WUSA9) -- Two Md. residents pleaded guilty Monday and Tuesday to conspiring to commit wire fraud in connection with a mortgage scheme involving the purchase of two properties located on North Patterson Park Avenue in Baltimore, Md.

Authorities said the real estate agent Nsane Phanuel Ligate, 42, of Ashburn, Va. pleaded guilty Tuesday and his co-defendant Cane Mwihava, 43, of Bowie, Md. also pleaded guilty to the same offense Monday.

The United States Attorney for the District of Maryland Rod J. Rosenstein announced the guilty pleas.

Ligate and his co-conspirators found two properties for sale located at 424 and 444 North Patterson Park Avenue in Baltimore. Authorities said during that time, Mwihava started a shell company called Xavier Engineering and Construction Company (XECC), in order to get settlement disbursements for purported home renovations.

According to authorities, co-conspirator Gladyness Sila, with the help of Ligate pretended to be the real estate agent and another co-conspirator Larry Johnson acted as the buyer. The three individuals included false statements in the loan applications for both properties regarding Johnson's employment, income, credit and assets, authorities said.

Authorities said both Mwihava and Ligate falsely inflated the purchase price of the properties claiming that repairs and renovations had been done at each property by XECC. However, the renovations were in fact never done.

The conspirators got a total of $108,860 out of the settlement and then split the amount among each other.

In June 2008, Ligate and Mwihava caused banks to wire transfer a total of $181,159.65 and $179,866.93, in order to help finish the settlement transactions,authorities said.

As a result of this incident, HUD, which insured the loan for one property lost a total of $164,090, and the bank which was the lender for the second property lost a total of $188,001.58.

Both conspirators are facing at least 30 years in prison and will have to pay a $1 million fine, authorities said. Thee sentencing for Mwihava is scheduled for October 14, 2014. Ligate's sentencing will be on October 16.

Authorities said Gladyness Silaa, 35, of Bowie, Md. pleaded guilty to conspiracy to commit wire fraud. Her sentencing is scheduled for June 16, 2014. Larry Johnson, 57 also pleaded guilty to making false statements in a loan application and was sentenced in February to eight months in prison.


Greenbelt Deals