A man accused of falsifying loan documents as part of a $1.6 million mortgage-flipping scheme was sentenced to 41 months in prison yesterday.
David C. Jackson, 45, of New Kensington, who worked as a licensed mortgage broker running Comvest Capital, pleaded guilty to bank fraud and money laundering back in March.
He was one of eight defendants charged in the conspiracy that began in 1998. The defendants bought 27 properties in poor communities -- primarily Wilkinsburg -- and then sold them at inflated prices.
As part of the scheme, often, the homes were sold to straw purchasers, who had been paid to take the loans out in their names.
Senior U.S. District Judge Mauice B. Cohill Jr. sentenced Mr. Jackson at the top end of the advisory guidelines, saying that his crimes were serious.
Mr. Jackson prepared and processed the fake applications, including supporting documentation, such as W-2 forms and tax returns. Some of the loans were taken out in the name of Mr. Jackson's mother, said Assistant U.S. Attorney Carolyn Bloch.
In addition to his prison term, Mr. Jackson was ordered to pay $1,291,175 in restitution.
