2 sentenced for scheme involving foreclosures
MEMPHIS, Tenn. (AP) – Federal prosecutors say two men were each sentenced to two years and nine months in prison for their involvement in a real estate fraud scheme.
The U.S. attorney’s office in Memphis says Michael Pinkney of Memphis and Alan R. Price of Olive Branch, Miss. also must pay more than $1 million for a scheme involving foreclosed homes.
Facts revealed at their sentencing hearings showed the men recruited nominee buyers to purchase and refinance foreclosed properties and submitted false documents to mortgage finance companies.
Price, a registered property appraiser, would submit appraisals reflecting that improvements had been made to the properties, knowing that no repairs were made. These appraisals falsely inflated the properties’ values, allowing more money to be borrowed against them.
Both men pleaded guilty in April to wire fraud.
