A Bowie man pleaded guilty to wire fraud on Tuesday in connection with a mortgage fraud scheme that could have caused at least $2 million in losses to financial institutions.
Michael Abobor, 38, submitted fraudulent loan applications while working as a licensed Realtor in the state of Maryland, using known false financial and employment information to purchase homes in the state, according to a statement released by the United States Attorney’s Office.
Abobor also submitted falsified documents, including “doctored” W-2s and pay stubs alleging the the borrowers made more money than they actually did, so that the applicants would qualify for larger loans, according to his plea agreement.
By using these falsified documents and applications, Abobor was able to purchase two homes in his own name and several other using the names and credits of family members and friends. Abobor also received additional funds as “renovation payments.”
All of these loans eventually fell into default, resulting in losses to the financial institutions, according to the statement.
The U.S. States Attorneys Office gives this example of Abobor’s crimes:
On July 25, 2007, Abobor facilitated the purchase of a home in Bowie, and while serving as the buyer’s real estate agent, knowingly submitted a false loan application on the buyer’s behalf. The loan application, among other things, vastly inflated the buyer’s monthly income figures. Relying upon these false representations, the lending institution funded a loan of $375,000. As part of this transaction, Abobor received a commission payment of $5,499, and also received over $37,000 in “renovation" payments.
In total, Abobor caused more than $2 million in intended losses to victim financial institutions by facilitating at least seven fraudulent real estate transactions. According to his plea agreement, he took more than $20,000 in commissions and collected more than $270,000 for “renovation payments” for property improvements that were never completed.
Abobor is facing up to 30 years in prison and a $1 million fine. As part of his plea agreement, he must also forfeit $2,026,205, including any assets or money traceable to his offenses.
He will be sentenced on April 18, 2013.