Kirkland couple, former police officer sentenced for mortgage fraud scheme
By RAECHEL DAWSON
Kirkland Reporter Reporter
November 1, 2012 · Updated 4:30 PM
A Kirkland couple and a former police officer from Florida were sentenced Oct. 26 for being involved in mortgage fraud scheme in Florida, according to the U.S. Attorney’s Office.
The former policeman Joel Streinz, 54, was sentenced to five years in federal prison for taking $6.2 million and was ordered to pay back $1 million in restitution.
George Cavallo, 47, and wife Paula Hornberger, 41, collectively stole $8.3 million in fraudulent loans and were ordered to pay $13.2 million in restitution. Both face up to 10 years in federal prison.
The three conspired to commit wire fraud and made false statements on loan applications, which were submitted to FDIC-insured financial institutions and mortgage lenders, according to court documents.
Dating back to 1990, the trio plotted to buy residential property in Sarasota, Fla. by lying about the property’s price, their intended use of the property, employment information, income and assets, to name a few, the U.S. Attorney’s Office said.
Their goal was to obtain the best loan possible for each property and sell the property in a few years.
The scheme came to an end in 2008 when the real estate market collapsed.
Contact Kirkland Reporter Reporter Raechel Dawson at rdawson@kirklandreporter.com or 425-822-9166 X5052.
Comment on this story.
So keep your comments:
- Civil
- Smart
- On-topic
- Free of profanity
We ask that all participants own their words by logging in with their Facebook account. It's a simple process that will take seconds and helps keep our comments free of trolls, cranks, and “drive-by” commenters. We reserve the right to remove comments from anyone using screen names, pseudonyms or false identities. Please refer to our Terms of Use for full detail on participating on our site.
