The president of a Northeast Ohio title company was sentenced to five years in prison Monday for her role in a mortgage fraud case involving property deals in three cities. She could face even more prison time. Ideastream's Mhari Saito explains.
Clarissa Foster of Shaker Title Services was indicted 18 months ago in an extensive mortgage fraud case that involved 61 people, 38 properties in Cleveland, East Cleveland and Garfield Heights, and 2.85 M million dollars in loans from multiple lenders. Prosecutors charged that she and her 60-year-old mother lied to lender Argent Mortgage Company claiming money they provided for downpayments actually came from borrowers and then collected commissions for the service.
Cuyahoga County Assistant Prosecutor Michael Jackson.
Cuyahoga County Assistant Prosecutor Michael Jackson: So the lender thinks the borrower is putting $10,000 down but in fact it's coming from one of the key players in the scheme.
In court, witnesses testified that other players in the scheme simply made numbers up on documents so that borrowers could qualify for home loans. Foster was sentenced to five years in prison and ordered to pay $100,000 to Argent. Her mother got three years probation. The two say they will appeal. But that was for only nine of the property deals in the indictment. Later this month, the two head back to court to face charges on the rest of the properties. There are more sentencings in the case ahead. One of the biggest players in the case, Neal Wolf of Ace Home Loans, has pleaded guilty and is set to be sentenced on Sept. 22. Mhari Saito, 90.3.