Thaindian News

COLUMBIA, SOUTH CAROLINA (BNO NEWS) — A Bethune, South Carolina woman on Tuesday pleaded guilty to misleading mortgage lenders, prosecutors said.

Christie J. McGougan, 41, pled guilty in federal court to conspiracy to falsify mortgage loan applications. Evidence presented in court established that between 2004 and 2006, McGougan and a business partner sold modular and existing homes in the Lugoff-Camden area. McGougan marketed the properties to buyers, telling them that they did not have to make down payments to purchase the properties.

However, banks required down payments from the buyers to approve the mortgage financing, and relied on closing statements prepared for each transaction to determine if the buyer was making a down payment.

To decieve the banks, McGougan used business funds to purchase cashier’s checks in the names of the buyers, giving the appearance to banks that the buyers were making down payments. McGougan knew that the closing statements indicated that the buyers were making the down payments, but she signed or approved them anyway. The deceptive closing statements were relied upon by the bank in approving the mortgage loans.

Many of the houses in this case ended up in foreclosure, and most of the buyers ultimately declared bankruptcy. The Government and McGougan dispute the amount of loss, which will be determined at sentencing, but it is estimated to be between $400,000 and over $1,000,000.

She faces a maximum penalty of $250,000 and imprisonment for five years. Sentencing is scheduled for May 25.

The case is the result of an investigation by the Federal Bureau of Investigation.