Unlicensed Loan Officer Sentenced to Federal Prison

SACRAMENTO, Calif.—United States Attorney McGregor W. Scott announced today that SENNETT H. SWIFT, 26, of Sacramento, was sentenced today by United States District Judge Lawrence K. Karlton to 15 months in prison. SWIFT pleaded guilty on January 15, 2008, to felony counts of bank fraud and money laundering.

This case is the product of a joint investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.

According to Assistant United States Attorney Matthew Stegman, who prosecuted the case, SWIFT admitted that he defrauded two homeowners and the corresponding lenders by fraudulently refinancing the two homes. The purpose of SWIFT’s fraud was to receive the substantial loan broker commissions. To accomplish this fraud, the defendant solicited these two homeowners and falsely told them that they would receive loans with favorable terms, such as a low adjustable rate that would not increase above a certain rate cap. He also falsely led the homeowners to believe that their prepayment penalties on their existing mortgages would be rebated by the defendant. Actually, SWIFT knew there would be no rebates and that the rate caps were higher than promised. Additionally, in one of the cases, SWIFT submitted a forged loan application with forged documents to the lender without the knowledge or consent of the homeowner. In addition, the loan application contained false statements regarding the eligibility of the homeowner for the loan, such as wages inflated above her true wages.

In addition to a 15 month prison sentence, Judge Karlton also ordered the defendant to pay as restitution the $38,843.53 he obtained from lenders as loan broker commissions. Investigating agents seized approximately $30,000 from the defendant that Judge Karlton ordered forfeited. The defendant had $3,400 in cash on him when he was arrested at the Sacramento International Airport. In addition, agents seized $27,441 just after the defendant’s arrest from the defendant’s two bank accounts. Upon release from prison, the defendant will be on supervised release for 3 years.

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