Tampa Realtor Pleads Guilty to Fraudulent Bankruptcy Scheme
He filed a fake bankruptcy petition that prevented Fannie Mae from foreclosing on property he was trying to sell, according to the U.S. Attorney’s Office.
TAMPA – A Tampa Realtor has pleaded guilty to a scheme that prevented Fannie Mae from lawfully foreclosing on property he was trying to sell, according to the U.S. Attorney’s Office for the Middle District of Florida.
David Lyle Morgan, 53, of Tampa, pleaded guilty to one count of bankruptcy fraud. He faces a maximum penalty of five years in federal prison. A sentencing date has not been set.
According to the plea agreement, Morgan was a licensed Realtor who entered into a contract with a homeowner to sell a property in foreclosure. To prevent the Federal National Mortgage Association, commonly known as Fannie Mae, from lawfully foreclosing on the homeowner’s property, Morgan devised and executed a bankruptcy fraud scheme wherein he filed a fraudulent bankruptcy petition in the name of the homeowner, without the homeowner’s knowledge or consent, just before to the scheduled foreclosure sale date. The fraudulent bankruptcy invoked the automatic stay provision of the bankruptcy code, which prevented Fannie Mae from conducting the foreclosure sale and obtaining title to the property.
The fraudulent bankruptcy petition filed by Morgan allowed him to continue efforts to sell the property in order to collect real estate commissions, the U.S. attorney said.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General.
U.S. Attorney | Courts | Bankruptcy Fraud | Tampabay News
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