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Wednesday, November 18, 2009

Feds: Appraiser Falsified Westport Mortgage Application

A Norwalk real estate professional today entered a not guilty plea on federal charges he falsified information on a mortgage application for a Westport home he appraised at $2.7 million.

Prosecutors said Thomas Preston, 49, entered the plea in U.S. District Court in Bridgeport.

A grand jury had returned an indictment on Oct. 7 charging Preston with one count of making a false statement on a mortgage loan application, the U.S. Attorney’s Office said.

Following the arraignment, he was released on a personal recognizance bond.

According to the indictment, Preston owned and managed a real estate appraisal company known as Redding Appraisers, and provided appraisals of real and commercial real estate in Connecticut to real estate agents. 

On approximately Oct. 23, 2006, he “knowingly and willfully” made a false statement or report in a mortgage loan application submitted to IndyMac Bank, a financial institution headquartered in Pasadena, Calif, the indictment said.

The false statement related to a real estate appraisal that he made, which he knew would be submitted with the mortgage loan application, on a residential property in Westport, the court document said.

The appraisal stated that the property had three habitable floors when, in fact, it had only two habitable floors, according to prosecutors.

The alleged false statement allowed Preston to justify his appraisal that the property was worth $2.7 million, which corresponded with the stated value in the loan application, the indictment said.

If convicted of the charge, Preston faces a maximum term of imprisonment of 30 years and a fine of up to $1 million.

The case came out of the Connecticut Mortgage Fraud Task Force whose formation was announced in July by the U.S. Attorney’s Office and the FBI to investigate and prosecute mortgage fraud cases and related financial crimes in the state.

In addition to investigating past mortgage fraud schemes, the Task Force will focus on emerging crime trends that are associated with the growing tide of foreclosures, including “foreclosure rescue” schemes, and “short sale” schemes, the U.S. Attorney’s Office said.

It said citizens are encouraged to report any suspected mortgage fraud activity by calling (203)333-3512 and requesting the Connecticut Mortgage Fraud Task Force, or by sending an e-mail to .

Comments:     Comment Policy

It’s important to convey the correct information & the author mistakenly states that “Preston provided appraisals...to Real Estate Agents”.
Appraisals are paid for by the borrower, and become the property of the Lender.  It is the Lender who orders the appraisal, not the realtor.

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