Woodland Hills woman pleads guilty to mortgage fraud scheme
A Woodland Hills woman pleaded guilty Monday in federal court to one count of fraudulently obtaining a mortgage loan and using the proceeds to finance a family member's vacation and pay off debts.
Monica Frommer, 33, admitted in her plea agreement that she and her husband falsely stated a combined income of more than $200,000 in a 2004 mortgage application. Based on their statements, a lender gave them a mortgage loan in the amount of $784,000.
The plea agreement alleges that Frommer used the money to pay off previous mortgage loans and to finance an $11,000 vacation that her brother and his family took to Jackson Hole, Wyo.
Frommer faces up to 10 years in prison and fines of $250,000 when she is sentenced in June, federal prosecutors said.
-- Catherine Saillant
EDITOR'S PICKS:
This is probably a lot more common than we think. People blame greedy Wall Street for the housing and economic collapse but greedy homeowners are as much or more to blame. So many bought house they couldn't afford and so many used equity to purchase cars and vacations or payoff credit cards.
Posted by: Tornadoes28 | February 28, 2011 at 03:15 PM
This story is extremely vague and poorly written! What this individual did is basically what half of America did between 2004 and 2007. I'm not saying it was right, but the reason the economy is the way it is, is because of the overwheling amount of refinances with "stated income" loans.... why is this story special? La Times.... come on guys.....
Posted by: Rod | February 28, 2011 at 03:21 PM
Just curious why was she singled out? You would need a jail the size of nevada to prosecute all of the housing fraud in the last decade.
Posted by: Fred | February 28, 2011 at 03:33 PM
Yet bankers on Wall St. who defrauded to the tune of trillions walk free as a bird, gigantic bonuses in hand.
Dylan said it best:
"Steal a little and they throw you in jail.
Steal a lot and they make you king."
Posted by: Zimmerman | February 28, 2011 at 04:21 PM
I'm glad they tracked down the person who did this.
I guess the economy will recover now, right?
Posted by: Tom | February 28, 2011 at 04:29 PM
if the judiciary and police really are intent on following up, you can easily jail more than 0.5 million people who were part of similar schemes during the heady days of 2004-2007.
Posted by: jason | February 28, 2011 at 05:19 PM