Can Mortgage Fraud Charges Also Trigger Wire Fraud Charges?

 Posted on May 08, 2025 in Fraud

Three East Texas women were recently indicted in an $8 million mortgage fraud scheme. One of the three women has been dubbed the "Short Sale Queen." In addition to mortgage fraud, the three were charged with conspiracy to commit wire fraud and conspiracy to submit false statements to a federally insured financial institution.

Three digital companies, including Short Sale Queen, LLC, were used to find homeowners in the pre-foreclosure short sale process and then help the homeowners list the properties for sale. After obtaining a signed listing agreement with the homeowners, fake documents, including letters from fictional buyers, letters to banks and mortgage companies asking them to freeze the foreclosure process, and falsified purchase agreements were given to the homeowners.

Allegedly, fraudulent documents for 88 properties, totaling more than $8 million in sales and $390,000 in commissions, were submitted. The involved financial institutions suffered about $2.5 million in losses. Federal white-collar charges like mortgage fraud and wire fraud are extremely serious. If you are facing charges like these, the best thing you can do is to contact a Dallas, TX criminal defense lawyer with experience defending federal charges.

How Does Mortgage Fraud Overlap with Wire Fraud?

Mortgage fraud refers to the deliberate act of lying or omitting information used by lenders to insure, purchase, or fund a mortgage loan. Mortgage fraud can be committed by borrowers or by individuals in or outside a lending institution.

A banker, real estate agent, or bank officer using his or her inside knowledge of the mortgage lending process to steal cash or equity is mortgage fraud. A borrower who lies about his or her credit situation, the value of a property, income, or employment status to obtain a loan or to obtain favorable loan conditions is also committing mortgage fraud.

Federal mortgage fraud is prosecuted under 18 U.S.C., Section 1014, and the feds get involved in mortgage fraud because the overall U.S. economy is tied to banks, people’s homes, and mortgages. If banks are taking losses because of mortgage fraud, the federal government must make sure things are being done right to avoid another 2008 housing collapse.

Wire fraud is the use of electronic communications with the intent to commit financial fraud like mortgage fraud or bank fraud. Electronic communication can be in the form of a phone call, a fax, an email, a text, or a social media message.  Wire fraud essentially describes the method of fraud, while mortgage fraud describes the target.  

When charged federally, mortgage fraud, real estate fraud, bank fraud, mail fraud, and money laundering are usually prosecuted as "mortgage wire fraud," "real estate wire fraud," "mail wire fraud," or simply "wire fraud." The penalties for these federal offenses are harsh and require a highly skilled criminal defense lawyer with exceptional federal crime knowledge and experience.

What Are the Penalties for Federal Mortgage Wire Fraud?

When prosecuted federally, a sentence for mortgage wire fraud can be up to 30 years in federal prison and a maximum fine of $1 million. Wire fraud, on its own, carries a federal sentence of up to 20 years in federal prison and a maximum fine of $250,000 for an individual or $500,000 for an organization. Wire fraud that targets a financial institution (like mortgage fraud) has a potential sentence of up to 30 years in prison and a maximum fine of $1 million.  

In a mortgage wire fraud case, the prosecutor must prove beyond a reasonable doubt that the crime was committed knowingly and intentionally. When sentencing for mortgage wire fraud, federal judges will look at the amount of loss caused and the defendant’s prior criminal record. If the defendant is unable financially to return the losses caused, he or she is likely to receive more time in prison.

Contact a Dallas, TX Federal White-Collar Crimes Lawyer

If you have been charged federally for a white-collar crime, it is extremely important that you speak to an experienced Dallas, TX white-collar crimes attorney from Spencer & Associates. Attorney Spencer has successfully defended very high-profile fraud defense cases and will fight aggressively for your future. To schedule your free consultation, call 214-385-8500.