Feds nab mortgage fraud fugitive

by Ryan Smith01 Oct 2013

A fugitive in a federal mortgage fraud case was arrested Friday at a Virginia airport, according to the Burlington (N.C.) Times-News.

Fabian David Sparrow, of Burlington, is one of several people charged with conspiracy to commit fraud and obstruction of justice in the case. Federal prosecutors allege that the group concocted a scheme in which they sold 1,100 homes with federally insured loans. the loan applications inflated the prices of the homes and contained false information about the applicants’ ability to repay, the Times-News reported. The government lost more than $16 million as a result of the fraud, prosecutors claim.

Prosecutors also allege that Phoenix Housing Group, of which Sparrow was a manager, told customers that their monthly payments would be lower than they actually were in order to convince more customers to buy. Sparrow himself is accused of illegally manipulating customers’ credit ratings to make them appear more favorable, according to the Times-News.

Sparrow was indicted in connection with the case on Aug. 6. A fugitive warrant was issued for his arrest Aug. 7. He was arrested Friday at Dulles International Airport just outside Washington, D.C., the Times-News reported.

Three defendants in the case have already pleaded guilty. If convicted, Sparrow faces up to 55 years in prison and a fine of up to $1.5 million. He has previously been convicted of misdemeanor conspiracy and drug possession.

COMMENTS

  • by MarilynK.Ketteman | 10/6/2013 5:15:09 AM

    Admit this is the way the Mobile Home Industry is designed. Purchase your lot and pay more than the insurance value of the home,plus interest which amounts to the full property value in 10 years. The rest is gravy. Resulting in interest at 50% or more loss value compared to stickbuilt conventional.Not only does the industry gift politicians campaigns,but they act like overcharging consumers for poorly designed products at inflated prices is a favor. The"closing" attorney knows it is a poor consumer deal. I say jail Buffet and the Claytons', and free Sparrow with an award for "Best Pirate Practices", as supported by the industry.

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