Man sentenced in mortgage fraud scheme
Robert Brooks, 46, sentenced to federal prison
SAN ANTONIO - According to a press release by the Department of Justice, Robert Brooks, 46, was sentenced Tuesday to 135 months in federal prison, followed by five years of supervised release.
Brooks was also ordered to pay approximately $8.5 million restitution for his role in a mortgage fraud operation.
Brooks was involved in a series of property flipping schemes which led to a conviction on January 29, 2013, of one count of conspiring to commit bank, wire and mail fraud, eight counts of mail fraud and two counts of aiding the filing of false income tax returns.
During the trial, evidence showed that Brooks directed 20 individuals in participating in a mortgage fraud scheme between May 17, 2005, and February 21, 2008.
Throughout that time, Brooks purchased properties at fair market value then flipped them at an inflated price. He compensated his co-defendants -- appraisers, loan processers, title company employees, straw purchasers, etc. -- for their participation in the scheme.
According to the Department of Justice, Brooks' mortgage loan scheme involved more than 40 Dallas properties and defrauded financial institutions in Dallas, San Antonio, Austin and Houston of more than $20 million.
Brooks was also found to have submitted false 2007 income tax returns for himself, his wife and one other person.
Brooks is currently the only defendant in the case to be sentenced.
The case resulted from an investigation by the FBI and IRS.
The case is also part of Operation Stolen Dreams, President Obama's interagency Financial Fraud Enforcement Task Force, organized to lead aggressive, coordinated and proactive efforts to investigate and prosecute significant financial crimes.
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