An Illinois attorney is liable for more than $10 million for filing falsified documents with the government concerning 237 defaulted mortgage loans.
Robert S. Luce signed Department of Housing and Urban Development (HUD) documents stating that no one at his mortgage company – MDR Mortgage Corp – faced criminal conviction, debarment, or a monetary penalty, despite the fact he was indicted in 2005, Chicago Daily Law Bulletin reported Monday. (RELATED: Fed Worker Got TWO Subsidized Housing Units Despite Long Waiting List)
Luce “knowingly made a false claim by certifying that none of the principals of MDR were involved in a proceeding that could result in a criminal conviction,” U.S. District Judge John J. Tharp ruled. (RELATED: Bureaucrats Steal Half A Million In Fraudulent Bonuses, Get Time Behind Bars)
HUD regulations prohibit loan correspondents such as MDR from originating loans if they face such punishments. Luce was able to originate loans through HUD for three additional years by falsifying the documents.
Tharp ruled that Luce owed nearly $3.5 million, but those damages triple under the False Claims Act, bringing the total after tacking on $16,500 in fines, to nearly $10.4 million. Luce plans to appeal the ruling.
He was indicted on charges of wire fraud, mail fraud, obstruction of justice and false statements unrelated to MDR in 2005. Regardless, he annually submitted a form to HUD that stated that no one at MDR faced criminal conviction, debarment, or a monetary penalty from 2006 to 2008.
Luce was ultimately issued a $30,000 fine after admitting to obstructing justice in 2008 and had his law license suspended for five months in 2010 for committing a criminal act.
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