The fraud related to preservation services on Fannie Mae foreclosed properties
A Florida real estate broker has been sentenced to six months in federal prison for committing wire fraud against Fannie Mae, according to the US Attorney’s Office for the Middle District of Florida.
Hollie Dustin was also ordered by US District Judge Sheri Chappell to serve a three-year term of supervised release and 100 hours of community service and to pay restitution in the amount of $34,001.25. As part of her sentence, the court also entered a forfeiture money judgment in the amount of $34,001.25, the proceeds of the wire fraud.
Dustin owned Home Choice Real Estate, a company that contracted with Fannie Mae to manage and perform preservation services on various Fannie Mae foreclosed properties. Under a Master Listing Agreement with Fannie Mae, Home Choice was prohibited from using any vendors that Dustin controlled to perform preservation services on the properties.
However, Dustin used a company that she controlled, ProPreserve, to perform preservation services on the properties without Fannie Mae’s knowledge or consent. She then submitted approximately 550 ProPreserve invoices for Home Choice, which Fannie Mae paid.
Court documents also showed that Dustin created inflated ProPreserve invoices for work already performed by other vendors and submitted those false invoices to Fannie Mae for payment. She used interstate wires to submit the invoices to Fannie Mae.
Dustin’s sentence follows her plea of guilty entered on June 19.