Yet another case involving collateral mortgages

by Justin da Rosa26 Oct 2015
Two men are facing charges in a mortgage fraud case.

Daniel Coddington of Colorado and Jesse Erwin of Vevada, were indicted last week by a grand jury on investment fraud charges.

The two are accused in a case in which Coddington allegedly told investors he was the owner of Golden Summit Investors Group, according to the Colorado Springs Gazette. Erwin allegedly acted as the company’s attorney.

The two men allegedly collected over $17 million and used a great deal of those funds for personal use, according to the U.S. Attorney’s office. One individual invested $9 million alone.

Between 2010 and 2011, the pair convinced investors to fork over cash they said would be used to purchase collateralized mortgages.

They face 13 counts each of wire fraud and two counts of security fraud.

The wire fraud counts could result in 20 years in prison and a $250,000 fine; the securities fraud charge could land each in jail for 20 years, along with a $5 million fine.


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