Former Head of Iowa Mortgage Group Guilty of Fraud
DES MOINES, Iowa (AP) - A federal jury has convicted the former president of the Iowa Association of Mortgage Brokers in a fraud scheme that prosecutors say almost cost some homeowners their homes to foreclosure.
The U.S. attorney's office says Paul Kramer, of Granger, was convicted of 18 counts of wire and bank fraud on Wednesday in Des Moines. Kramer owned a mortgage brokerage and closing company.
The jury also convicted Lane Anderson, of Altoona, on two counts of conspiring with Kramer to commit bank and wire fraud.
Kramer and Anderson worked together to obtain $1.5 million in mortgage loans using the name and credit score of a contractor who didn't qualify for the loans. Kramer eventually took funds from the closing company for his mortgage brokerage. Those funds should have paid off mortgages.