Two men from Denver, Colorado were charged by the federal grand jury for devising a mortgage fraud scheme which includes wire fraud. These two are named as Cedric Lipsey, a real estate agent, and Philip A. Martinez, a loan officer and mortgage broker.

The indictment says that Cedric Lipsey was helped and supported by Philip Martinez to formulate a scheme that would defraud mortgage companies which began last April 2004 until March 2006. Lipsey and Martinez were said to purchase and resell several residential properties by paying for what they called as “investors” who are tasked to obtain the mortgage loans to purchase the properties. After they have acquired the loans, they eventually resell the properties to another set of buyers for an inflated price. Lipsey and Martinez received commissions and proceeds from these two sets of transactions.

The indictment also says that Lipsey and Martinez have used several fraudulent documents which include the borrowers’ employment, proof and sources of their assets, and income, for the loan application.

The two will be sentenced with 20 years federal imprisonment and a fine of $250,000 per count if they are proven guilty of 1 through 27 counts of wire fraud. And if they are convicted for monetary transaction in property derived from unlawful activity, which is count 28, they will be facing another 10 years imprisonment and fine of $250,000.