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Two Originators Face Prison, Fines Over Mortgage Fraud

A New Jersey man formerly in the employ of a lender pled guilty to mortgage fraud, as a onetime mortgage originator from Maryland received jail time for his role in bilking friends and family members out of millions, according to sources. Both made _MReport's_ mortgage fraud blotter Friday.

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_MReport_ sourced the two stories from the ""_Associated Press_"":http://www.washingtonpost.com/local/maryland-man-sentenced-to-33-months-in-prison-for-mortgage-fraud-scheme/2012/01/13/gIQAtyrWvP_story.html and the ""_Daily Record_"":http://www.dailyrecord.com/article/20120112/NJNEWS/301120016?odyssey=mod|mostcom.

The _AP_ offered the story of Douglas Skibicki, sentenced by a judge to pay restitution and serve 33 months in the slammer

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for raking in $1.4 million in illicit real estate transactions that involved lenders, member of his family, and others.

Once a mortgage originator, prosecutors said that the fraudster partnered with an appraiser to misrepresent a series of mortgages in order to make their millions, according to the _AP_. The malfeasance occurred between April 2006 and August 2009.

The _Daily Record_ followed up his account with another that focused on Jorge Abbud, of New Jersey, who pled guilty to having secured $138,402 in illicit proceeds from home sales that he initially promised to homeowners faced with foreclosure.

The news publication reported that he went about obtaining the illicit funds by first offering to help those in need, then recruiting straw buyers to fill in for distressed homeowners for one to three years.

Abbud falsified information for the straw buyers on applications that included income, identity, and more, according to the _Daily Record_, which said that he could face up to 20 years behind prison bars and $250,000 or more in fines.

About Author: Ryan Schuette

Ryan Schuette is a journalist, cartoonist, and social entrepreneur with several years of experience in real-estate news, international reporting, and business management. He currently lives in the Washington, D.C., area, where he freelances for DS News and MReport.
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