Attorney Goes to Prison for Loan Fraud | Mortgage Loan Compliance

U.S. District Judge Raymond A. Jackson sentenced Kristina Marie Cardwell, a former attorney from Virginia Beach, Va., to 66 months in prison, followed by three years of supervised release for her participation in a mortgage fraud scheme.

According to Dana J. Boente, U.S. attorney for the Eastern District of Virginia, Cardwell worked at law firms associated with co-defendant Troy Aurelius Titus for nearly 10 years. She admitted to purchasing three residential properties in Virginia Beach from entities associated with Mr. Titus. She purchased the properties in her own name and received mortgages on the properties, although she intended for Mr. Titus to retain control over the properties and sell them to third parties at a later time.

The funds taken from Cardwell’s purchases were allegedly used to cover some of Titus’s financial obligations. Mr. Titus, who is currently in custody, is scheduled to appear in court on Nov. 10, 2009.

While applying for the mortgages, Cardwell made false statements about her income, assets and financial liabilities. During the application process, thousands of dollars were moved into Cardwell’s bank account to inflate her account balance then moved out of the account.

Cardwell was also ordered to pay $708,339 in restitution and consented to her license to practice law being revoked.

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