Broker in VA pleads Guilty to Million Dollar Mortgage Fraud

The United States Attorney for the Eastern District of Virginia, Neil H. MacBride along with Assistant Director in Charge of the Federal Bureau of Investigation Washington Field Office, Joseph Persichini Jr.  in announced on December 1 that Michael Milan, age 49 from Bethesda, Maryland had pleaded guilty on November 30th in regard to the charges against him involving mail and wire fraud in a multi-million dollar mortgage fraud scheme.

United States District Judge T.S. Ellis, III accepted Mr. Milan’s plea. Mr. Milan’s sentencing is scheduled for February 12, 2010 and he faces a maximum sentence of twenty years in federal prison. Mr. Milan agreed to pay restitution in the amount of three million one hundred forty one thousand four hundred and nine dollars and to forfeit one million sixty one thousand eight hundred ninety dollars in proceeds he obtained through the mortgage fraud scheme.

Mr. Milan’s plea agreement confessed that he consulted several mortgage brokerage companies and conspired with other individuals within those mortgage brokerage companies to submit fraudulent residential mortgage applications to mortgage lenders. Mortgage lenders involved with the residential purchases and refinances transactions did lend to Mr. Milan and his conspirators based on the information provided on the mortgage applications and the supporting documents provided to them. Mr. Milan further admitted that he made his associates complete the applications with fraudulent information in regard to wages, assets and employment of the borrowers involved. The mortgage applications submitted with the fraudulent information often stated that the borrowers made thousands of dollars in income that didn’t exist. The borrowers were said to have worked for a company called Collid LLC. Mr. Milan was the controlling principal of Collid LLC. Mortgage lenders while conducting employment verifications would end up calling Mr. Milan and he would simply verify that the borrower worked for Collid LLC. The fraud scheme included eleven residential properties and resulted in losses over two million five hundred thousand dollars.

Mr. Milan’s plea agreement also revealed that he in an attempt to avoid prosecution by fleeing the United States to Iran after a warrant to search his office was executed in June of 2008. Mr. Milan returned to the United States in April of this year.

Mr. Milan in an attempt to explain why he left the United States produced fraudulent Iranian Court documents that claimed he had been detained in Iran due to incarcerated during the summer of 2008 and that he would have returned had it not been for the incarceration. His plea agreement attests to his attempt to avoid punishment in the United States by producing fraudulent documents to the court.

Mr. Milan is not the only defendant in the multi-million dollar mortgage fraud case. The case involved six defendants and include his include his son, Dustin Milan, another loan officer and a settlement agent.

The Federal Bureau of Investigation Washington Field Office investigated the case and Edmund P. Power and Stephen Learned; Assistant United States Attorneys prosecuted the case.


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