Kyle Wimmer of Rock Hill, South Carolina was sentenced in Federal Court for bank fraud and money laundering to 63 months in federal prison and was ordered to pay $4 million in restitution.
A quote from the mortgage fraud blog follows: “According to the Indictment and evidence presented in court established that Wimmer devised a real estate investment scheme to defraud his investors and upstate lending institutions. Wimmer recruited investors to purchase distressed houses that he promised would be fixed up and rented. He then inflated investors’ financial information to make them appear more creditworthy than they really were, in an effort to qualify them for mortgage loans from banks to purchase the investment properties. At the same time, Wimmer grossly inflated the value of the investment properties, so that banks would lend more money than the properties were actually worth. Wimmer then skimmed profits from each deal, failing to … Read More