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Mastermind Behind Mortgage Fraud Scheme Sentenced

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File photo of a prison cell. (photo: GABRIEL BOUYS/AFP/Getty Images)

File photo of a prison cell. (photo: GABRIEL BOUYS/AFP/Getty Images)

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LAS VEGAS (AP) — The mastermind of a Las Vegas mortgage fraud scheme has been sentenced to just over 11 years in prison.

U.S. District Judge Gloria Navarro handed down the sentence Wednesday to 60-year-old Lloyd Gardley, who pleaded guilty in August to conspiracy and fraud charges.

Gardley was ordered to serve five years of supervised release following his prison term and to pay over $1.4 million in restitution.

U.S. Attorney for Nevada Daniel Bogden says Gardley was considered to the leader of a scheme that caused about $15 million in losses to lenders and financial institutions.

Ten persons were convicted in the scheme that involved the use of “straw buyers” and the submission of fraudulent paperwork in order to obtain mortgage loans between 2005 and 2007.

Once the mortgage loans were approved, the defendants caused money from the loan transactions to be disbursed to their own use and benefit. The defendants typically rented the homes and resold them for a profit, using the same scheme, and then defaulted on the loans.

Prosecutors say the evidence showed the defendants used the scheme to purchase 30 homes in Las Vegas, some of which were “flipped” or sold twice within short periods of time.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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