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One sentenced for fraud

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  • | 4:00 p.m. September 5, 2012
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  • Tampa Bay-Lakeland
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TAMPA — After pleading guilty to conspiring to commit mortgage fraud June 7, Francis Reeder, 47, of Fort Lauderdale, was sentenced to 40 months in federal prison. In addition, Reeder must pay more than $5 million in restitution to lenders affected by his fraudulent scheme.

According to a release from the U.S. Attorney's Office, from December 2005 to January 2007, Dennis Scoby, a licensed mortgage broker, owned and operated Mortgage Doctors and South Tampa Land Trust with Reeder. During this time, Scoby purchased 12 properties and Reeder purchased four properties in the Tampa Bay area as investments. However, the properties were purchased through loan applications that included misrepresentations, including false statements about employment, income, funds for closing, disclosure of other properties, and occupancy.

Scoby and Reeder were using the proceeds of loan closings to put down payments and make initial loan payments on other properties, according to court documents. Most of the properties were foreclosed upon, resulting in total losses of more than $5 million to the lenders.

For his part, Scoby, 42, of Clearwater, received 30 months in federal prison for conspiring to commit mortgage fraud. He was also ordered to pay more than $4 million in restitution to lenders, in addition to a $4 million forfeiture money judgment. Gregory Mulheran, 37, of Valrico, received five years of probation and was ordered to pay $340,000 in restitution for his participation as the loan processor on the deals.

In addition to their sentences and ordered restitution payments, the men are banned from working in financial- or mortgage-related businesses.


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