Henderson Couple Indicted on Short Sale Fraud Charges - 8 News NOW

Henderson Couple Indicted on Short Sale Fraud Charges

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LAS VEGAS --  A husband and wife from Henderson who worked in the real estate profession in southern Nevada were indicted Wednesday on charges of conspiracy and fraud for allegedly making false statements to Wells Fargo Bank to get approval for a short sale on their home, Nevada's U.S. Attorney Daniel Bogden said.

Cynthia Hosbrook, 41, a licensed real estate agent in Nevada, and Robert Hosbrook, 51, who was formerly licensed, were each charged with one count of conspiracy to commit bank fraud and one count of bank fraud.

According to the indictment, the Hosbrooks allegedly solicited a relative to act as a straw buyer for their residence at 2704 Mallard Landing in Henderson.

In a short sale contract dated March 2, 2010, and in other paperwork submitted to Wells Fargo Bank, the Hosbrooks allegedly falsely represented the following: the sale of their home would be an arms-length transaction; the sale was between two unrelated parties; no party to the contract was a family member or business associate; there were no agreements that the seller would remain in the property as a renter; and the short sale did not constitute straw buying. 

The Hosbrooks also allegedly caused the relative/straw buyer to falsely sign a title company form on July 9, 2010, stating that the relative would be residing at the property.

The Hosbrooks were summoned to appear for an initial hearing and arraignment on June 21 before U.S. Magistrate Judge Carl Hoffman. If convicted, the Hosbrooks face up to 30 years in prison and fines of up to $1 million on each count.

The case is being investigated by the Federal Housing Finance Agency Office of the Inspector General, and is being prosecuted by Assistant U.S. Attorney J. Gregory Damm.

 

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