Charles R. Sammon, 37, pleaded guilty to 13 counts of mail fraud, money laundering and wire fraud, according to the Boston Business Journal. Prosecutors say Sammon, who was once an attorney in Boston, participated in at least 13 fraudulent real estate transactions between 2006 and 2007.
The scam involved recruiting straw buyers for the properties, according to the Journal. The buyers were paid as much as $40,000 per transaction, and the lenders for the transactions weren’t made aware of the payments. Many of the straw buyers were also told that the seller would pay their mortgage for up to a year, according to the Journal.
Sammon served as the seller of the properties in some transactions and as the lender’s closing attorney in others, the Journal reported.
All 13 of the shady mortgages ended up in default, according to the Journal. The properties were sold at foreclosure auctions or through short sales, leading to losses of more than $2.5 million.
Sammon faces up to 20 years in prison for each count of mail and wire fraud, and up to 10 years in prison for each count of money laundering, the Journal reported. He is scheduled to be sentenced in February.
A Pennsylvania man has been convicted in federal court for a mortgage fraud scheme involving more than a dozen properties in the Boston area.