Three plead guilty in fraud case

Kevin Rademacher

Wednesday, Feb. 4, 2004 | 11:02 a.m.

Three defendants in a Las Vegas mortgage fraud case pleaded guilty Tuesday.

Beth Lanza and Michael Cartron both pleaded guilty to one count of wire fraud. They face up to 30 years in prison and a $1 million fine. Gary Stephens pleaded guilty to one count of making false statements to the Department of Housing and Urban Development and faces a possible two-year prison term and a $250,000 fine.

The pleas were entered in U.S. District Court in Las Vegas.

Lanza was a regional manager for National City Mortgage in Las Vegas and Cartron was a loan officer for the company. The Justice Department said that from August 1998 to October 1999, in order to receive commissions, the two accepted loan documents from fictitious borrowers that contained fraudulent statements and documents.

During that time the couple submitted 17 fraudulent loan applications that cost National City Mortgage more than $185,000, the Justice Department said.

The couple also admitted to submitting fraudulent loan applications during 1997 and 1998 when they were employed by Mortgage Capital Resources in Las Vegas. Those fraudulent documents allowed otherwise unqualified borrowers to receive loans, costing HUD more than $105,000.

Stephens, a loan officer at Mortgage Capital Resources, admitted to submitting fraudulent documents to HUD in 1998.

Attorneys for the Lanza, Cartron and Stephens could not be reached for comment. Sentencing is scheduled for May 3.

Two other individuals in the case, Horace Smith and Zina Sagona, both loan officers with Mortgage Capital Resources, also pleaded guilty to felony offenses. Smith was sentenced to 37 months in prison. Sagona is scheduled for sentencing on March 24.