Feds Nail Preparer For Phony Tax Returns Used In Straw Buyer Scam

The Times-Picayune reports that Robert Green, who was allegedly paid about $8,000 for preparing false tax documents for straw buyers who submitted fraudulent mortgage applications for federally insured loans in a house flipping scam, pleaded guilty in a New Orleans, Louisiana federal court last week as part of a deal that requires him to cooperate with the government's continuing investigation of the scam.

According to prosecutors, the mortgage fraud scheme involved local businessman Calvin Davis, who recruited straw buyers to buy his houses at inflated prices and submit fraudulent applications to obtaining financing and, further, they claim that local real estate appraiser Donald White was paid an unspecified amount for furnishing false and inflated appraisals of the property that Davis was getting rid of. According to federal court records, White and Davis have not been charged.

Prior to Green entering his guilty plea, three other participants in the scam, Dennis LeBlanc, Dennis Addison and Timothy Falls have also entered guilty pleas and await sentencing. The latter three acted as the straw buyers in the scheme. For more, see House flipping scam nets plea (N.O. man will be sentenced in July).
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