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October 24, 2014

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Henderson couple face 30 years in prison, $1 million fine for short-sale scheme

A husband and wife real estate agent team pleaded guilty today to bank fraud in connection with a series of short-sale fraud schemes.

Henderson residents Cynthia Hosbrook, 41, and Robert Hosbrook, 52, pleaded guilty to one count of bank fraud. They are scheduled to appear in court March 3 and face up to 30 years in prison and a fine of up to $1 million, said Daniel Bogden, U.S. attorney for the District of Nevada.

According to their guilty plea agreements, in 2010, the Hosbrooks engaged in a short-sale fraud scheme to sell their personal home to Cynthia Hosbrook’s mother. They then defrauded Wells Fargo Bank and Freddie Mac by falsely claiming that the sale was due to personal hardship and that the buyer was not a family member, Bogden said.

They completed the sale and lived in the home even though they had not suffered any hardship. The scheme resulted in a loss of more than $170,000 for Wells Fargo and Freddie Mac, Bogden said.

The Hosbrooks also were involved in two other short-sale fraud incidents in 2008 and 2009, Bogden said. Their three transactions resulted in over $350,000 in total losses for Wells Fargo and Freddie Mac.

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