AFreehold mortgage broker was sentenced to 12 months of home confinement as part of a five-year term of probation on Nov. 13 for his guilty plea to a charge of bank fraud for submitting fraudulent documents in support of a $367,500 residential mortgage loan application, U.S. Attorney Christopher J. Christie announced.
U.S. District Judge Joel A. Pisano, sitting in Trenton, also ordered Shawn Brennan, 41, of Freehold, to pay $214,000 in restitution, according to a press release.
On April 3, Brennan made his first appearance in federal court and pleaded guilty before Pisano to a one-count Information.
At his plea hearing, Brennan stated that in February 2006 he was employed as a mortgage broker with Market Yard Mortgage in Freehold and, as such, his duties included preparing and submitting loan applications and supporting documents for clients seeking mortgage loans.
Brennan admitted during that time, he assisted clients, who are identified in the Information only as M.D. and G.D., in applying for a mortgage loan to fund the purchase of a new home. Brennan admitted that the Uniform Residential Loan Application and supporting documentation that he prepared and submitted on behalf of M.D. and G.D. to potential lenders contained false information about M.D. and G.D.
Brennan admitted that the false information included representations that M.D. was employed by the “Brando Construction Company” for a period of more than four years.
Brennan admitted that he also submitted a false and fraudulent W-2 form indicating that M.D. had earned $86,400 from the company in 2005, when in fact, he knew there was no such company. Brennan admitted that he submitted the false loan application and W-2 with the intent to defraud the bank issuing a loan to M.D. and G.D, according to the U.S. Attorney.
U.S. Bank, whose deposits are insured by the Federal Deposit Insurance Corporation, ultimately issued a $367,500 loan to M.D. and G.D.
In determining the actual sentence, Pisano consulted the advisory U.S. Sentencing Guidelines, which provide appropriate sentencing ranges that take into account the severity and characteristics of the offense, the defendant’s criminal history, if any, and other factors. The judge, however, is not bound by those guidelines in determining a sentence.