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Kirkland couple, former police officer sentenced for mortgage fraud scheme
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.