Mortgage Fraud Scheme Exposed: $50 Million Scheme in Phoenix

Strategic Insights -

Brett Matheson, a 46-year-old businessman, has pleaded guilty to conspiracy to commit wire fraud in a $50 million mortgage fraud scheme based in Phoenix. Matheson, as President and CEO of Maricopa Property Investment Solutions, Inc., recruited straw buyers in real estate seminars and facilitated the submission of mortgage loan applications containing false information. The scheme involved 52 properties and nearly $50 million in fraudulent loans, with losses to lenders approaching $20 million. The guilty plea marks a significant development in the "Operation Stolen Dreams" initiative, which has seen 27 of the 27 defendants indicted convicted through guilty pleas.

Key Takeaways:

  • Brett Matheson, 46, pleaded guilty to conspiracy to commit wire fraud in a $50 million mortgage fraud scheme based in Phoenix.
  • Matheson, as President and CEO of Maricopa Property Investment Solutions, Inc., recruited straw buyers in real estate seminars and facilitated the submission of mortgage loan applications containing false information.
  • The scheme involved 52 properties and nearly $50 million in fraudulent loans, with losses to lenders approaching $20 million.
  • Matheson personally obtained financing for the purchase of two properties using altered pay stubs and bogus verifications of employment.
  • The kickbacks from the scheme were often used on Matheson's personal expenses or to make down payments to qualify additional "straw" buyers for financing on other properties.
  • The losses to lenders destroyed property values, crippled lending institutions, and ruined entire neighborhoods in the community.
  • The guilty plea is part of the "Operation Stolen Dreams" initiative, which has seen 27 of the 27 defendants indicted convicted through guilty pleas.
  • The investigation in this case was conducted by the Internal Revenue Service, Criminal Investigations Division and the FBI.

Statistics:

  • $50 million: the total value of fraudulent loans in the scheme
  • 53 properties: the number of properties involved in the scheme
  • $20 million: the losses to lenders in the scheme
  • 52 properties: the number of properties used in the scheme
  • 27 defendants: the number of defendants indicted in the "Operation Stolen Dreams" initiative
  • 27 convictions: the number of convictions through guilty pleas in the "Operation Stolen Dreams" initiative

Sources:

  • "Brett Matheson, 46, Pleads Guilty to Conspiracy to Commit Wire Fraud in $50 Million Mortgage Fraud Scheme": FBI Press Release
  • "U.S. Attorney Dennis K. Burke Announces Guilty Plea in Mortgage Fraud Scheme": U.S. Department of Justice Press Release