Peter Allen, who pleaded guilty to conspiracy to commit bank fraud, was sentenced to 21 months in federal prison followed by two years of supervised release. He was also ordered to pay $96,400 in restitution to National City and $97,900 in restitution to Fannie Mae.
Prosecutors said Allen and his co-conspirators defrauded the institutions by opbaining mortgages using false information. The conspirators purchased properties for anywhere between $5,000 and $40,000 per home, then recruited straw buyers to submit phony loan applications.
Allen assisted in the scheme by meeting with straw buyers and encouraging them to participate. Prosecutors said Allen’s activities resulted in a loss of about $231,000.
A Michigan man has been sentenced to prison for defrauding Fannie Mae and National City Bank.