Mortgage Fraud

An attorney in Stone Mountain, Georgia, has received what is being called the longest sentence ever handed down for mortgage fraud.^[1] Chalana McFarland received a sentence of 30 years in federal prison and was ordered to repay $11,588,465.45.^[2] She was convicted on 170 counts in February for conspiracy, bank fraud, wire fraud, mail fraud, identity theft, falsifying Social Security numbers, falsifying loan documents, money laundering, obstruction of justice, and perjury.^[3]

Ms. McFarland’s very harsh sentence, especially as it was a first-time, white-collar, offense, was due perhaps to “her lack of remorse for the loss and distress her schemes caused her victims and thousands of homeowners whose neighborhoods were harmed.”^[4]

The Assistant US Attorney in this case, Barbara Nelan, called the defendant the “queen of mortgage fraudsters” who skimmed more than $20 million in inflated mortgages on more than 100 homes.^[5] We have successfully handled several cases against the prosecutor, and she is a tough and very competent opponent.

Mortgage fraud is a very serious federal crime, and the FBI sees it as one of the fastest-growing financial crimes in the country.^[6]

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[1] Don Plummer, Judge Belts Loan Fraud; Mortgage Thief Gets 30 Years, Atlanta Journal-Constitution, Aug. 25, 2005, at 1C, available here.
[2] Id.
[3] Id.
[4] Id.
[5] Id.
[6] See our post on home-building fraud, here.