Two sentenced in mortgage fraud scheme

by Adam Smith03 Jun 2014
Two defendants in a mortgage fraud scheme have been handed their sentences while five others await their fates.

Two players in the Crisp & Cole Real Estate mortgage fraud scheme have been handed their sentences in California. Christopher Lance Stovall and Megan Balod are the ninth and 10th Crisp & Cole defendants sentenced in a mortgage fraud case said to cost the industry at least $20 million in loans that were never repaid, The Bakersfield Californian has reported.

Stovall was a loan officer at Tower Lending, a mortgage brokerage associated with the real estate company. Federal prosecutors alleged Stovall knowingly created false statements to be made in loan applications of straw buyers.

Megan Balod was one of the schele's straw buyers, and the sister-in-law of David Crisp, the company's former CEO.

Stovall, who agreed to a plea deal, was sentenced to 12 months in prison, followed by 30 months of supervised release. Stovall, meanwhile, received 36 months of probation.

Five more participants in the scheme are awaiting sentencing, The Bakersfield Californian reported.

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