A 42-year-old Houston man, Lawrence Randall Benham, has been sentenced for his role in a multi-million dollar mortgage fraud scheme.

Benham was sentenced in connection with his guilty plea to wire fraud and mail fraud involving a financial institution.  The court sentenced the defendant to 97 months imprisonment, and restitution of $412,800.00. 

Benham, who has been in federal custody without bond since his arrest in September 2005, will remain in federal custody to serve his sentence.

Benham was convicted of devising a mortgage fraud scheme in which he located residential properties for sale and persuaded and used others as nominee purchasers of the properties for his benefit. 

Using the nominee borrower’s credit and identifying information on loan applications, Benham exaggerated the nominee’s financial resources and ability to repay the loans, and arranged for the nominee borrowers to purchase the properties at prices far in excess of their true value.  Benham then directed as much as $1.5 million from the closing on the residential properties to be paid to himself or to accounts he controlled. 

At a previous hearing, Benham admitted that on July 7, 2003, he caused a federally insured financial institution to wire transfer $325,151 as a result of a fraudulent loan application he submitted in the name of a nominee borrower, without the borrower’s permission. 

Benham used these funds for his own benefit, knowing he was not legally entitled to do so.  On October 3, 2003, Benham admitted having caused a payment on the mortgage to be sent by commercial courier to a lender for the purpose of avoiding detection and continuing the fraudulent scheme.

Benham conceded  in court that the amount of gain from the mortgage fraud scheme attributable to his scheme is between $1.5  and $2.0 million, and that he used the proceeds to purchase or lease assets for himself and his business, including a Land Rover, furnishings, and luxury items like plasma televisions.