The 2006 president of the Arizona Association of Mortgage Brokers has pleaded guilty and been sentenced to one year in prison for conspiring to commit wire fraud.
A report by Phoenix CBS5 Tuesday said that Jerry Craig Sr. misled “straw” buyers to purchase homes they were not qualified for in order to make the commissions and fees off of roughly US$ 40m in loans. Craig and his son, Jerry Craig Jr, made out with roughly US$ 1m to US$ 4m in fraudulent commissions and fees, according to the report.
Inflated home prices and low documentation requirements during the subprime mortgage boom helped the father and son to commit the fraudulent scheme. Their company, Spectrum Financial Group, was also charged in 2009 with lawsuit from a former employee alleging the company failed to contribute profits to a promised company profit share program, according to Arizona court documents.
Along with one year in prison, Jerry Craig Sr. has been ordered to pay US$ 2.4m in restitution to First Fidelity Bank while Craig junior was sentenced to house arrest, according to the CBS report.
Tina Rose, the current president of the Arizona Association of Mortgage Professionals, previously known as the Arizona Association of Mortgage Brokers, confirmed that Jerry Craig Sr. was the 2006 president of the association but is no longer an officer or board member. She also released the following statement:
“Over the last five years, AAMP has worked closely with state and federal regulators and legislators to mandate mortgage loan originator licensing. We also offer a variety of continuing education programs to ensure originators in Arizona understand the regulations and guidelines and conduct their business in accordance with these requirements.”
Jerry Craig Sr. did not return requests for comment.