A federal grand jury has indicted Jason Morales, a 44-year-old licensed mortgage loan officer from Chagrin Falls, Ohio, on six counts of bank fraud, U.S. Attorney Gregory W. Kehoe announced on Mar. 5. If convicted, Morales could face up to 30 years in federal prison for each count.
The indictment alleges that Morales orchestrated a mortgage fraud scheme targeting a financial institution by creating fake paystubs and employment documents for clients who did not work at the companies listed. These documents falsely showed that the clients had jobs and monthly earnings at a construction company and a consulting company. The indictment further states that Morales altered legitimate bank statements and created fictitious ones to make it appear as though borrowers had enough assets to qualify for mortgage loans.
According to the charges, Morales submitted these fraudulent documents to financial institutions, which relied on them during their underwriting process. To further mislead lenders, he allegedly created websites for the fake companies with his own contact information so he could impersonate company executives when lenders called to verify employment.
U.S. Attorney Kehoe emphasized that an indictment is only a formal charge and that every defendant is presumed innocent unless proven guilty in court.
The case was investigated by the Federal Housing Finance Agency – Office of Inspector General, U.S. Department of Housing and Urban Development – Office of Inspector General, and the Federal Bureau of Investigation. Special Assistant United States Attorney Chris Poor will prosecute the case.
