A former mortgage-company CFO, implicated in a scheme to submit bogus loans to Kansas lenders that included Countrywide Home Loans, pleaded guilty for his role in the mortgage fraud.
Terrence Cole, once the finance chief for Heritage Mortgage, admitted to federal charges in Kansas that he conspired to commit wire fraud and money laundering as part of a wider mortgage fraud that resulted in $14 million in illegally obtained loans, according to the Kansas City Business Journal. He faces as many as five years in prison and up to $250,000 in fines for the conspiracy charge, and 20 years and $500,000 for the laundering charge.
Cole and other individuals were indicted last November in connection with the scheme, which allegedly involved submitting bogus loans to lenders such as Mortgage Solutions and First Magnus, in addition to Countrywide, according to the newspaper report.
Cole, who is scheduled for sentencing on Sept. 22, was accused of submitting loan documents to banks that falsely reported that home buyers worked jobs they didn’t have, and falsified their earnings amounts to six figure, according to the newspaper.