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May 22, 2014

Raleigh real estate broker gets 42-month prison term for mortgage fraud scheme

A Raleigh real estate broker was sentenced to 42 months of jail this week in federal court for conspiracy to commit mail, wire and bank fraud.

A Raleigh real estate broker was sentenced to 42 months in jail this week in federal court for conspiracy to commit mail, wire and bank fraud.

According to a U.S. Justice Department release, Mark Henry Tkac, 49, was part of a mortgage fraud conspiracy that defrauded banks and lenders through a real estate flipping scheme. The scheme involved convincing individuals to allow their name and credit to be used to secure mortgage loans in return for a kickback from the loan proceeds.

The conspiracy included making false U.S. Housing and Urban Development settlement statements as part of the real estate closing and loan funding process. Those statements were then transmitted via mail to banks and mortgage lenders.

The conspiracy also involved developers David Lewis Johnson and Arthur Lee Barnes, mortgage broker Mark Thomas Bowe and attorney Jeffrey Scott Taggart. All four men previously received prison time for their roles in the conspiracy.

Tkac and the other conspirators typically received several thousand dollars in kickbacks from each fraudulent transaction that was closed by Taggart.

Tkac was a licensed real estate broker in Wake County from August 2006 to May 2008. His prison term will be followed by five years of supervised release. He was also ordered to pay $1.6 million in restitution.

Tkac was sentenced Wednesday by U.S. District Judge James Dever III. The case came out of an Internal Revenue Service criminal investigation.

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