Fake W-2s for $7.3 Million in FHA and VA Loans — Indicted

A loan officer and three recruiters are charged with flooding a lender with fabricated W-2s, pay stubs and bank statements to push $7.3M in FHA/VA loans to borrowers who didn’t qualify. Indictment only — no convictions.

From June 2020 through November 2022, the four allegedly conspired to falsify income, employment, bank records and other documents to qualify unqualified borrowers for FHA, VA and conventional loans originated through Eustis Mortgage Corporation, doing business as Verity Mortgage.

Randall, whose real-estate license was inactive, allegedly recruited borrowers and directed the preparation of fraudulent W-2s, pay stubs, employment verifications and bank statements. Turner, a Verity loan officer, allegedly submitted the fabricated documents knowing they were altered. Shoumbert and Gardner allegedly produced falsified bank statements at Randall’s request.

HUD has already paid over $493,499 in partial FHA insurance claims on the loans. VA OIG, HUD OIG and FHFA OIG investigated. The charges are allegations; all four are presumed innocent.

"flooding lenders with fabricated finance and employment information to push through unqualified borrowers"
— U.S. Attorney’s Office, Northern District of Texas

Source: U.S. Attorney’s Office, Northern District of Texas. Case file in the VA Fraud case files — part of the VA Fraud record. Cases are published as the courts decided them; amounts are stated as the Justice Department states them (billed, stolen, or ordered in restitution, as labeled).