U.S. Department of Justice

United States Attorney
District of Arizona

Investor Sentenced to 27 Months for Role in $4 Million Mortgage Fraud Scheme in Arizona

PHOENIX – Dustin Thompson, 32, of Phoenix, was sentenced on Monday, May 2, 2011, to 27 months in prison for his involvement in a $4 million mortgage fraud scheme. Thompson pleaded guilty to one count of conspiracy to commit wire fraud related to his participation in a two-year conspiracy involving the purchase of 24 properties in Phoenix using fraudulent loan documents. One other co-conspirator was also charged and has pleaded guilty.

“Driven by greed, this defendant schemed the system and engaged in the type of mortgage fraud that has destroyed property values, lending institutions and entire neighborhoods in our community,” said U.S. Attorney Dennis K.  Burke. “This office, along with our partners in the FBI and Internal Revenue Service (IRS), is committed to prosecuting those who engage in mortgage fraud and putting them in prison.”

Investigators discovered that from 2005 through June of 2007 Thompson conspired to commit mortgage fraud by submitting fraudulent mortgage loan applications on behalf of straw buyers, under false pretenses.  He obtained and disbursed the proceeds of the fraudulently obtained loans, including directing $1.2 million of the proceeds to a bank account under his control.  Thompson used the proceeds from the fraud for personal expenses and to finance other “get rich” schemes. Thompson received a reduced sentence due to his early guilty plea and cooperation. The entire conspiracy resulted in a loss to lending institutions of approximately $4 million.

This case was brought in coordination with the President’s Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. The task force is also making the public aware of resources available to protect against these types of fraud and how to report fraud when it occurs.  To learn more about investment scams, how to take steps to protect yourself from scams or how to report investment fraud if you believe you have been victimized, the task force recommends that you visit its website www.StopFraud.gov.

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GENERAL INFORMATION
Financial Fraud Enforcement Task Force

 Leadership
Eric Holder, Attorney General, Chair
 
 Contact
(202) 514-2000
Recursos Para Vctimas de Fraude
What is Financial Fraud?
What is Financial Fraud?

Financial Fraud encompasses a wide range of illegal behavior - from mortgage scams to Ponzi schemes, credit card theft to tax fraud. Everyone is affected by financial fraud.