LoanSafe reports a former mortgage broker and the owner of a defunct manufactured housing dealership in Conway SC pleaded guilty to felony mortgage fraud charges today in federal court in Florence. Michael Fortenberry, the mortgage broker, and Glenn Vaught, former owner of G&E Home Sales, pleaded guilty to one charge each of conspiracy to commit loan application fraud, which carries a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release. The two men are free on $25,000 unsecured bonds until sentencing. The men obtained mortgages in the buyers’ names to the tune of over $2 million, with loan proceeds going to G&E Home Sales. Fortenberry and Vaught then split the proceeds without providing homes to customers. Mortgage broker Cynthia Fortenberry — Michael Fortenberry’s wife — was indicted on seven felony charges of conspiracy to commit loan application fraud. She is scheduled to be in federal court for an arraignment on August.
(photo credit: jailbirdsonline)