Kenneth Blair, 54, of Clermont, pleaded guilty on July 28 to one count of bank fraud and faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set. Blair entered his plea while on pretrial release and awaiting sentencing for a similar mortgage fraud scheme, according to an announcement by U.S. Attorney Gregory W. Kehoe.
According to court documents, from as early as May 2024 through July 2025 in the Middle District of Florida and elsewhere, Blair and others devised a scheme to defraud financial institutions by making materially false and fraudulent representations. Blair’s role included preparing and submitting fictitious paystubs and employment promotion letters for clients under the names of companies to show fabricated income from employers.
These actions led mortgage lenders to approve loans for otherwise unqualified borrowers in exchange for undisclosed payments made by clients to Blair. The fraudulent loans were subsequently purchased and guaranteed by government-sponsored entities Fannie Mae and Freddie Mac, as well as the Federal Housing Administration.
The case was investigated by the Federal Housing Finance Agency – Office of Inspector General and the U.S. Department of Housing and Urban Development – Office of Inspector General. Special Assistant United States Attorney Chris Poor is prosecuting the case.
On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division, with a mission “to zealously investigate and prosecute those who steal or fraudulently misuse taxpayer dollars.” Department efforts support President Trump’s Task Force to Eliminate Fraud, chaired by Vice President J.D. Vance.