FEDERAL

conspiracy to commit mail, wire, and bank fraud.
As a result of his plea, Nkrumah was sentenced to
48 months of incarceration, 5 years of supervised
release, $2,940 in restitution to Fannie Mae, and a
$113,080 forfeiture. On June 14, 2013, in the same
court, Charmaine Davis pled guilty to making a false
statement for the purpose of influencing the action of
a financial institution. As a result of her plea, Davis
was sentenced to 24 months of incarceration, 5 years
of supervised release, a $6,000 fine, and a $39,434
forfeiture.
Nkrumah and others fraudulently obtained more
than $1 million in loans, submitted fake documents
for more than $10 million in mortgages in a short
sale scheme involving enterprise loans, and attempted
to fraudulently purchase dozens of multifamily
properties.
This was a joint investigation with the FBI, USPIS,
and HUD-OIG.
Guilty Plea in a $1 Million Fraud Conspiracy,
Dallas, Texas
On May 8, 2013, Michael Burnham was indicted for
conspiracy to commit bank fraud in the U.S. District
Court for the Eastern District of Texas. He pled
guilty on July 3, 2013.
From March to August 2010, Burnham conspired to
sell seven properties at inflated prices to straw buyers
in exchange for kickbacks. The scheme caused losses
of $948,000 for the enterprises.
This was a joint investigation with HUD-OIG.
Former Banker Flips Properties, Washington, DC
On May 2, 2013, Lonnie Johnson pled guilty to
conspiracy to commit bank fraud in the U.S. District
Court for the District of Columbia. On August
30, 2013, in the same court, an information was
filed against Cheryl Morrison, alleging conspiracy
to commit mail fraud. On September 25, 2013,
Morrison pled guilty to the charge.
Johnson, a former personal banker; Morrison,
a former owner of CEM Title, Inc.; and other
individuals engaged in a scheme to defraud financial
institutions and mortgage lenders by producing
fraudulent documents to support untruthful loan
applications. Fannie Mae purchased a number of
these fraudulently originated mortgages and faces
exposure to a potential loss exceeding $1 million.
This was a joint investigation with the Department
of State Bureau of Diplomatic Security, the Central
Intelligence Agency Office of Inspector General,
DOJ Office of Inspector General, the Department of
Homeland Security Office of Inspector General, the
Secret Service, the FBI, and HUD-OIG.
Mortgage Company Falsifies Documents for 50
Loans, Philadelphia, Pennsylvania
On May 1, 2013, an indictment was unsealed in
the U.S. District Court for the Eastern District of
Pennsylvania, charging six former employees of the
now defunct Madison Funding of Allentown—Joel
Tillett, Jason Boggs, Claribel Gonzalez, Florentina
Peralta, Ghovanna Gonzalez, and Angela Diaz—with
conspiracy, bank fraud, false statements, and aiding
and abetting. On August 14, 2013, Tillett was
sentenced to four years of incarceration and ordered
to pay restitution of $979,562, after pleading guilty
to conspiracy and to uttering and publishing false
documents to obtain a loan insured by FHA. On
August 16, 2013, a seventh former employee of
Madison Funding of Allentown, Denise Peralta, was
sentenced to 4 years of supervised release, 60 hours of
community service, and a fine of $500.
From October 2006 until at least June 2008, the
defendants allegedly conspired to defraud mortgage
lenders by submitting loan applications supported
26 Federal Housing Finance Agency Office of Inspector General