A Chicago man was sentenced to more than 12 years in federal prison after having been convicted of engaging in a mortgage fraud scheme involving 65 real-estate transactions on the South Side.
The scheme which netted Fred Haywood, 42, about $700,000 also garnered him 151 months in prison, and U.S. District Court Judge Ronald Guzman also ordered him to pay more than $1.4 million in restitution, according to federal officials.
Haywood, of Chicago, worked as a loan officer or processor for several different mortgage brokerages during the scheme, which occurred between 2001 and 2007, officials said.
Haywood pleaded guilty in April 2012 to wire fraud. Haywood was the last to be sentenced of six people who were charged in 2008 and 2009 and subsequently pleaded guilty. He received the longest sentence, officials said.
Haywood used false information to qualify borrowers for loans he then submitted to lenders. The false information included information about their income, assets, employment, intention to occupy the property, and source of down payment.
Court records also indicated that he continued his fraudulent conduct after he was indicted and while on pretrial release.
During the scheme, Haywood and the others recruited buyers with good credit to purchase properties, knowing at the time that these buyers did not have sufficient income to qualify for mortgages, had no intention of actually living in the properties they were purchasing, and had no intention of paying back the loans.
Haywood and the others promised to pay the buyers for putting the properties in their names.