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Posted at 06:04 PM ET, 05/14/2012

Woman sentenced in $70 million mortgage fraud scheme

A 53-year-old District woman was sentenced Monday to 29 months in prison for her role in a mortgage fraud scheme, federal prosecutors in Maryland said.

Prosecutors said Carole Nelson, who had pleaded guilty to a single count of money laundering in U.S. District Court in Greenbelt, was among the co-conspirators connected to a fraud run through her employer, Metro Dream Homes.

Metro Dream Homes promised to pay off homeowners’ mortgages in five to seven years in exchange for investments of at least $50,000 then “left them to fend for themselves,” according to the U.S. Attorney’s office in Maryland. In all, more than 1,000 people gave the company about $78 million, authorities said.

But instead of investing the money in business ventures, as they had agreed to do, the defendants used some of the cash from new investors to make mortgage payments for earlier investors, prosecutors said. Prosecutors said other money went to salaries, trips and luxury cars.

By  |  06:04 PM ET, 05/14/2012

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