PEORIA, Ill. (WCIA) — Officials said a Foosland man was sentenced to two years in federal prison for “conspiracy to commit bank fraud and band fraud in connection with a real estate short-sale scheme.”
In a news release, officials said 41-year-old David Litman pleaded guilty to conspiring with others “to defraud lending institutions in a series of short-sale transactions” between 2008 and 2010.
“Specifically, Litman caused false broker price opinions undervaluing residential properties to be submitted to financial institutions holding the mortgages of the properties, which he intended to purchase via a short sale.” They continued to say he also submitted false documents to financial institutions to get them to approve the ales. Those documents included false listing agreements and proof-of-funds letters.
“The defendant’s repeated acts of fraud over several years caused lending institutions to lose a significant amount of money,” said Acting U.S. Attorney Doug Quivey. “The defendant’s participation in the scheme thwarted the lenders’ ability to accurately value the home involved and prevented them from recouping a greater portion of their losses on the homeowners’ mortgages. Fraud in any part of the mortgage industry ultimately costs both lenders and borrowers and can’t be tolerated.”
Litman is expected to report to prison on May 18.