Friday, January 27, 2012

Marc Engelmann sentenced

Marc R. Engelmann, a Davenport, Iowa real estate attorney, was sentenced on 26 January 2012 to three years in federal prison for his part in a mortgage fraud conspiracy. Engelmann represented a seller who sold nine properties to Robert Herdrich and Darryl Hannekin at fraudulently inflated prices, which caused the lender to lend more than the properties were worth. That amounts to four months for each property. The court has not yet determined restitution to the lender, but based on the kickbacks to the buyers and the "usual" post-foreclosure, half-off sale price of real estate, I would guess that to be approaching a half million dollars.

More about the scheme here.