Vermont Home Mortgage Scam Uncovered; Couple Jailed

Lesson #1: Mortgage fraud doesn’t pay.

Nevertheless, a lot of people try it — especially with the current market conditions and the vast array of enticing, dangerous lending options. In this case, fortunately, the offenders were apprehended.

According to the Burlington Free Press, Jeffrey Sanders, 41, and Jeanette Sanders, 42, will spend time in jail on fraud and money laundering charges.

The fraudulent husband and wife mortgage broker team was sentenced in U.S. District Court for their participation in a scheme that bilked investors out of more than $1 million from 2001-2003.

The Sanders’ owned and operated A-Plus Mortgage in St. Albans, Vt., where prosecutors say they defrauded customers and home mortgage company representatives alike. In 2005, Kevin Sanders, Jeffery’s brother, pled guilty as well in his participation in the scheme. He’ll be sentenced this month.

In addition to fraud, the Sanders were also charged with illegally charging customers fees 11 times in 2002-2003, filing bogus mortgage applications that did not disclose fees paid outside of settlement. Additionally, they were hit with charges of money laundering and filing false home appraisals.

Thankfully, they’re out of business for good.