2 Sentenced In $78 Million Mortgage Fraud

GREENBELT, Md. (AP) — Two people convicted in a Ponzi scheme that defrauded some 1,000 investors of $78 million have been sentenced to prison.

Isaac Jerome Smith, 48, of Spotsylvania, Va., was sentenced Monday to nearly six years in prison.

Alvita Karen Gunn, 33, of Hanover was sentenced to five years. Both were ordered to pay restitution in an amount to be determined at a later hearing.

According to evidence presented at their trial in last winter, Smith and Gunn tricked homeowners into pouring money into a business with the promise that the revenue would be used to pay off their mortgages.

Investors were told they were investing in ATM machines, television advertising and calling card kiosks that would raise money for the mortgage payments. But prosecutors say those businesses never made any money.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

Comments

One Comment

  1. beejay says:

    The fools shouldn’t be compensated for anything. Stupid is as stupid does.

  2. Thebronze says:

    Yawn , Let us know when anyone in the WallStreet Criminal Syndicate
    who participated in defrauding Taxpaying Americans out of TRILLIONS of their Dollars have been sentenced for their crimes.,okay ?

  3. LUCKY LOU says:

    they ruined 1000 lives give them each life in prision 78 million life in prsion is easy these folks lost there retirement and the goverment keeps bailing out these schemes enough already

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