Humble woman pleads guilty to mortgage scheme
LAFAYETTE, LA
Mary L. Francois, 49, the owner of America's Best Mortgage and
Creative Solutions in St. Martinville, was accused of submitting
false loan applications on behalf of clients to mortgage lenders.
Francois also falsified documents to make it appear borrowers
were purchasing homes for significantly higher amounts than the
actual purchase price.
Francois worked out agreements with sellers that allowed her to
pocket the difference as part of her "payment for obtaining the
loan," according to the stipulated factual basis for her guilty
plea.
The scheme began in September 2005 and continued through
February 2008, resulting in about $2.3 million in mortgages for
people who did not have the income or credit rating necessary to
obtain loans, records show.
A federal grand jury in September indicted Francois on 32 counts
of wire fraud.
The two counts she pleaded guilty to involved a loan obtained on
behalf of a client who had a $13 balance in her checking account,
no significant employment and erratic payments of rent.
The factual basis for her plea said Francois gave the woman a
check for $22,000, then required the woman give her a check for the
same amount.
Francis then had the woman deposit the money and obtain a
balance statement reflecting she had about $21,000 in her account,
the statement said.
In November 2005, Francois had the account balance document,
which reflected a balance of $21,000.99, wired to the lending
institution, the statement said.
At Francois' request, an employee of her company signed a
document claiming to be the apartment manager where the woman
rented, falsely stating the woman always paid her rent on time, the
statement said.
The document also was wired to the lender.
Francois also submitted paperwork to the lender saying the woman
was purchasing the home for $115,000, when the actual sales price
was $93,000, the statement said.
That document was wired in October 2005. The remainder of the
money was paid to Francois' company, Creative Solutions, the
statement said.
Francois primarily obtained loans using WMC Mortgage Corp. and
Wilmington Finance, both located outside of Louisiana.
Francois faces a possible maximum 20-year prison sentence and a
fine of up to $250,000 on each of the two counts.
She remains out on bail and will be sentenced later.