A Lansing-area man has admitted his role in a mortgage fraud scheme that federal officials say resulted in at least $2.3 million in losses.
U.S. Attorney Patrick Miles says 39-year old Richard Hollern of Grand Ledge pled guilty Tuesday in U.S. District Court in Grand Rapids to conspiracy to commit bank fraud. He faces up to five years in prison when he is sentenced on December 1.
Hollern admitted that he conspired with others at CDC Investments, a Lansing real estate and investment company, to defraud banks in connection with mortgage loans.
Officials say banks were asked to loan money for sham real estate deals, and the money was split among multiple people. The mortgages were then left to go into foreclosure.
According to Miles, in 2006 and 2007 Hollern and his coconspirators at CDC defrauded mortgage lenders on 30 separate occasions resulting in losses of $2,325,000.
To date, eleven people have been convicted in the scheme resulting in prison sentences for all the defendants and restitution orders exceeding $14 million. Two others have pled guilty and are awaiting sentencing.
The prosecution is the result of an investigation by a task force, comprised of federal, state and local investigators.