State fraud investigator stated fraudulent income, state feds

by Ryan Smith07 May 2015
In today’s “Oh, God, the irony!” department, a state fraud investigator has been charged with fraud.

Lynwood Patrick Jr., 39, was arrested at his home yesterday on charges of wire fraud in connection with his alleged submission of a fraudulent application for a mortgage modification, according to the Connecticut U.S. Attorney’s Office. Patrick is the director of investigations for the Connecticut Department of Social Services’ office of quality assurance. In that capacity, he heads investigations into fraud, waste and abuse in federally funded welfare programs.

According to the U.S. Attorney’s Office, Patrick applied for a mortgage modification under the federal Making Home Affordable program, which is designed to help homeowners who’ve had a decline in income. Prosecutors say that when Patrick applied for the program, he claimed total assets of $500 in one checking account and claimed he had experienced a loss of income. In fact, he had thousands of dollars in multiple accounts at several banks, and his rate of pay hadn’t changed.

If convicted on the charges against him, Patrick could face up to 20 years in prison.



Is TILA-RESPA a good or bad thing long term?