Rejecting the recommendations of Assistant U.S. Attorney Gregory Damm, U.S. District Judge Jennifer Dorsey gave two former real estate agents only one day in custody of the U.S. Marshals Service and ordered them to pay restitution to the lenders they conned in a short sale fraud. Judge Dorsey did “sentence” Cynthia Hosbrook, 41, and Robert Hosbrook, 52, to five years of supervised release and ordered them to pay fines of $10,000 each.
The losers here are taxpayers, who footed a trial that probably cost several hundred thousand dollars.
The Holbrooks lied to Wells Fargo and Fannie Mae, claiming they needed to do a short sale of their home due to hardship. They “sold” the Las Vegas house to Cynthia Hosbrook‘s mother for cash and continued to live in it, causing a $170,000 loss to the lenders. Unmentioned is that they got a write-down of their mortgage and a reduced property tax basis, so their fraud still appears to have paid-off.
In their plea agreement last November to one count of bank fraud each, they admitted they had committed short sale fraud in the sale of two other Las Vegas homes in 2008 and 2009.
Read the original article in the Las Vegas Review Journal.