Home Equity Bank Fraud - 2 Years Prison Time and Over $300,000 in Restitution

Larry P. Corbi, 36, pleaded guilty to bank fraud and has been sentenced 2 years in federal prison and $356,644 in restitution.

Corbi defrauded banks by seeking home equity lines of credit at the same time from four different federally insured financial institutions in 2008. He applied for four home equity lines of credit in amounts ranging from $122,000 to $191,000 from Washington Mutual Bank, GMAC ResCap, Countrywide Bank F.S.B. and Metlife Bank/PHH Mortgage Corp.

In November 2007, he bought a $620,000 home in Granada Hills in November 2007.

Corbi did not disclose to each financial institution that he was concurrently applying for other credit lines that would also be secured by the Granada Hills home. Three of the four lines were approved and funded.

In total, he obtained $672,144 in loan proceeds, which included $200,000 he borrowed to buy the Granada Hills house. Upon foreclosure, the banks that had loaned him money suffered a $356,644 loss that Corbi has to pay back as restitution in addition to his 2 year prison sentence.

Fraud is intentionally lying in order to induce someone to rely on the lie perpetrated for profit or to gain some unfair or dishonest advantage.

The federal bank fraud statute criminalizes the conduct of any party who knowingly executes, or attempts to execute a scheme or trick to defraud a financial institution, by means of false or fraudulent representations.

Bank fraud may also be tied to other crimes such as wire fraud or forgery.

Therefore it is essential that you contact a federal criminal defense attorney that is well seasoned and experience if you have been charged with bank fraud or any other type of  fraud.

At Hedding Law Firm we have successfully handled thousands of federal and state cases over many years of successful criminal defense practice in Los Angeles.

Contact us and set up a FREE consultation with our  Los Angeles Criminal Defense Attorneys and let us help you and fight on your behalf.