Local News

Man sentenced in mortgage fraud scheme

Posted February 25, 2009

— A Raleigh man was sentenced Tuesday to seven years in federal prison in connection with a scheme to obtain mortgages based on bogus financial information, authorities said.

William Montelle Loyd III, 56, pleaded guilty to conspiracy to commit mail fraud, wire fraud and aggravated identity theft. He also was ordered to repay E-Loan more than $1.2 million.

Loyd and two women tried to defraud E-Loan, which offers mortgages and commercial loans online, authorities said. They submitted phony statements of income and employment history to obtain 16 mortgages between November 2002 and December 2006,  authorities said.

Loyd used his father's and his brother's identities and Social Security numbers in the scheme, authorities said.

The fraud cost the company about $2.6 million, authorities said.

Kelley Anne Spaulding, 38, of Durham, and Elizabeth Whitaker Clement, 46, of Raleigh, pleaded guilty last June to conspiring to commit wire fraud.

The case was part of Operation Malicious Mortgage, a government effort to crack down on mortgage fraud in the wake of lending practices that led to the collapse of the nation's credit markets.


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  • agmurphy1976 Feb 26, 2009

    Glad to see justice served. They cost this company more than 2.6 million but only have to pay back 1.2 million. Our "punishments" for criminals are such a joke.

  • whatelseisnew Feb 25, 2009

    Glad they got them, but the sentence is too short. On top of that any future income or assets these people might acquire should be accessible to e-loan recovering that money. Leave them just enough to buy happy meals and live in a cardboard box.

  • Dirty_Water Feb 25, 2009

    Just a few more months and the generous US taxpayers would have bailed them out. Oh well, timing is everything.

  • ncguy71 Feb 25, 2009

    Don't worry - Obama will probably pardon him.

  • OrdinaryCitizen Feb 25, 2009

    No pics?

  • Whatever Geez Feb 25, 2009

    well...when I get ready to buy a home I know where I'm going!

  • Fishman Feb 25, 2009

    That's one down. 999,999 to go