O'Fallon Man Sentenced to 33 Months for Fraud
St. Charles County mortgage broker misrepresented clients and hid that he was profiting from a real estate deal as a silent partner.
An O’Fallon man was sentenced Monday to 33 months in prison after he pleaded guilty to a mortgage fraud scheme involving four St. Louis area properties.
Mickey Johnson, 51, pleaded guilty in August to two counts of wire fraud after his first day of trial. Johnson admitted that he participated in a fraud scheme relating to the sale of four properties in the 3900 block of Labadie Avenue in north St. Louis.
Johnson, acting as the mortgage broker, manipulated buyers’ loan applications by inflating their income and falsely stating that the buyers intended to occupy the properties as primary residences.
He concealed down payments and other cash concessions made to the buyers from the sellers. Unknown to the lenders, Johnson was profiting from the sales as a "silent partner" to the property seller.
The properties listed in the indictment involved four lenders from Florida, Oregon, Texas and Georgia. The fraud scheme resulted in more than $200,000 in losses to the lenders when the homes were foreclosed. Since foreclosure, the homes have fallen into disrepair and are no longer habitable.
Johnson appeared today for sentencing before U.S. District Judge Audrey G. Fleissig. The FBI investigated the case.