Madison man sentenced to prison for mortgage fraud
Updated On: Jun 16 2014 01:29:00 PM CDT
A Madison man was sentenced to six months in federal prison for his role in a mortgage fraud scheme, according to a release from the U.S. Department of Justice.
David E. Robert, 42 was also sentenced Thursday to pay a $1,000 fine and $336,100 in restitution. He pleaded guilty to the charge on April 3.
Investigators said Robert was the owner of Western Designs and Sterling Concepts, residential construction companies, and between in 2006 he conspired with two others to secure a first and second mortgage for the purchase of a home in Westport.
One of the two, Becky L. Ring, formerly known as Becky L. Stoltenberg, was the former owner of JC Mortgage in Madison and P. Edwin Gray, of Oregon, was Robert’s accountant.
According to prosecutors, Gray falsified Robert’s income on a W-2 which allowed him to qualify for the mortgage loans that he otherwise would not have gotten. Stoltenberg acted as the mortgage broker on the loans and transmitted the documents to the bank.
Gray pleaded guilty to mortgage fraud in August 2012 and was sentenced to three years of probation in October 2012, which was later reduced to one year of probation.
Ring pleaded guilty to mortgage fraud in November 2012 was sentenced to one year of probation.
Gray had paid $700 towards restitution. Ring paid the remaining restitution owed of $335,400 prior to her sentencing.
Robert will pay nothing towards restitution because he was given credit for the payments made by the other two.
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