Adriene Newby-Allen, 40, of Alpharetta, was sentenced Monday to serve more than 11 years in federal prison for her role in a multi-million dollar mortgage fraud scheme. Newby-Allen pleaded guilty in July 2008 shortly before trial.
From mid-2004 through March of 2006, Newby-Allen conducted a mortgage fraud scheme that siphoned off millions of dollars in fraudulently inflated mortgage loans being provided to unqualified straw buyers, according to U.S. Attorney David E. Nahmias and information presented in court. One of those straw buyers her husband and co-defendant, Brinson Allen. He was found guilty of multiple charges relating to the fraudulent scheme on July 30 by a federal jury after a 10-day trial and will be sentenced at a later date.
Newby-Allen inflated the sale prices of residential real estate and arranged for the submission of false loan applications, documents and other information to mortgage lenders to obtain loans for the unqualified straw buyers. When the loans closed, Newby-Allen and her co-conspirators received millions of dollars of the mortgage loan proceeds through Newby-Allen's shell company, "Swiss Acquisitions," by using misrepresentations about disbursements of the loan proceeds. Newby-Allen personally received more than $1 million of the loan proceeds obtained in the fraudulent scheme.
Newby-Allen was sentenced to 135 months in federal prison to be followed by 5 years of supervised release, and ordered to pay $5,278,703 in restitution.
"This case is the result of a FBI sting operation that uncovered a mortgage fraud scheme with far reaching effects. This defendant, along with others, were on all sides of a complex paper trail that circled a number of criminal acitivies." Nahmias said.
Assistant United States Attorneys Doug Gilfillan and Barbara E. Nelan are prosecuting the case.
- www.northfulton.com
Tuesday, November 11, 2008
Alpharettan given 11 years for fraud
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