Phoenix Criminal Law News - Find a Phoenix Criminal Attorney

Ex-Loan Officer Gets 15 Years in $38M Mortgage Fraud Scheme

Jaime Lee Lawler, a.k.a. Paige Kinney of Phoenix, has been sentenced by a federal court to 15 years in prison over a plethora of misdealings, reports The Arizona Republic.

According to a press release by the Department of Justice, Lawler was initially charged with wire fraud conspiracy, money laundering and conspiracy to commit money laundering. She was sentenced on March 7, 2012, after pleading guilty to the charges. Under a separate indictment, she also pleaded guilty to charges of bankruptcy fraud.

Her fraud was perpetrated under two names. Under the name Lawler, she ran a $38 million mortgage-fraud scheme. She used the name Kinney to perpetrate bankruptcy fraud, where she hid her “Lawler” assets under the “Kinney” name.

According to court documents, Lawler’s fraud scheme used unqualified straw buyers to purchase properties, knowing full well that the buyers had no intention of living in the homes or paying the mortgage payments. This scheme took place between 2005 and 2007. Lawler submitted the names of these buyers along with false financial information to obtain loans. Lenders then issued loans above the asking price of the home. The money received in excess of the sale price was placed in Lawler’s bank account.

She also used the Kinney name to collect insurance money after a fake burglary. She was compensated nearly $140,000 for items she reported stolen. Many of those items were hidden for her by others and eventually found by investigators.

Lawler was sentenced to ten years for mortgage fraud and an additional five years for bankruptcy fraud. She has been ordered to pay $22,000,000 in restitution.

Related Resources: