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Bethesda Loan Broker Pleads Guilty to Mortgage Fraud Scheme
Mail Fraud and Wire Fraud are offenses under United States Federal Law which refer to specific statutory crimes committed in the United States of America pursuant to any scheme that attempts to unlawfully obtain money or property in which the U S Postal system is used at any point in the commission of a criminal offense.
Michael Milan, 49, of Bethesda, MD, faces a maximum penalty of 20 years in prison when he is sentenced on Feb. 12, 2010. As part of a guilty plea, Milan has agreed to pay restitution of $3,141,409 and to forfeit $1,061,890.31 in proceeds he obtained.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, and Joseph Persichini Jr., Assistant Director in charge of the FBI Washington Field Office, announced that Milan pleaded guilty yesterday to conspiracy to commit mail and wire fraud for his role in carrying out a multi-million dollar mortgage fraud scheme. The plea was accepted by United States District Judge T.S. Ellis, III.
This is the statement of facts issued by the Department of Justice in its press release filed on Tuesday, December 1, 2009:
“Milan admitted that he was a consultant to various mortgage brokerage companies and conspired with others to defraud mortgage lenders into lending funds for the purchase and refinance of residential properties. Milan caused his associates to prepare false mortgage applications which contained false information about the income and assets of the borrowers. Some of the mortgage applications falsely claimed that the borrowers earned hundreds of thousands of dollars from a company, Collid LLC, which Milan controlled. Milan’s conspiracy submitted fraudulent loan applications for the purchase and refinance of 11 different properties and caused losses of more than $2.5 million but less than $7 million.
Milan fled from the United States after the execution of a search warrant at his office in June 2008 and did not return until April 2009. During a detention hearing held after his return, Milan attempted to explain his extended flight from the U.S. by providing fraudulent Iranian court documents, which falsely claimed that he had been incarcerated in Iran during the summer of 2008. As part of his plea, Milan acknowledged that he attempted to obstruct justice with these false documents.”
Milan is the sixth defendant convicted by the investigation. Others convicted include a settlement agent, a loan officer who worked with Milan, and Milan’s son, Dustin Milan.
This case was investigated by the FBI’s Washington Field Office. Assistant United States Attorneys Edmund P. Power and Stephen P. Learned prosecuted the case on behalf of the United States.
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