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Could you spend the rest of your life in prison over mortgage fraud?

Steve Lombardi
Iowa personal injury, workers' compensation, motorcycle, quadriplegic, paraplegic, brain injury, death

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Read this story about a Ponzi Scheme out of Missouri involving alleged investments in England, that went on for ten years. The sentence of this 63-year-old man is for 40 long years. The CSO Mortality Tables give men a life expectancy to just over 80. Last I knew 63 plus 40 is well beyond age 90. This is no way to live your life out. If you're involved in something at work, that you think is criminal see a lawyer and get some advice. Don't allow yourself to end up being the fall-guy.

Clergyman Sentenced to Life in Prison for Mortgage Fraud

This 63 year-old man who is described as both a lawyer and a clergyman was sentenced to 40 years in federal prison without parole. The amount of money involved appears to be in excess of $30 million although the actual losses exceeded $70 million, according to Judge Reade. The Sentencing Memorandum is rather lengthy but nevertheless very interesting to read.

“On April 13, 2012, the jury returned guilty verdicts on Counts 1 through 13 and 16 through 22.”


From approximately 1999 to 2010, Sigillito organized and operated a fraudulent loan program that induced individuals to loan money to Smith and Distinctive Properties for purported land purchases in England. The loan program was known as the “British Lending Program,” or “BLP.”

At trial, Brown testified that the memorandum falsely represented that the loans were secured by real property.

The interest rates on the loans were high; on

average, between 17.5% and 25%, although some loans offered rates as high as 48%. Sigillito made numerous false representations to potential lenders, including, for example, that the purpose of the loan was to invest in land in England; the investment had little to no risk because the borrower had more than sufficient assets to cover his liabilities; and the laws in England were specially suited to allow a lender to collect on a defaulted loan quickly and efficiently.

Although the program was marketed as the “British” Lending Program, very little money actually crossed the Atlantic—Smith testified at trial that he received little money from the program and he sent no money back to the United States. When a loan matured, Sigillito encouraged the lender to roll over the loan, at which point additional fees were deducted.

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