A Lexington woman was sentenced to 15 months in prison Friday for a mortgage fraud scheme that caused a lending company to lose tens of thousands of dollars.
Brandy Hamilton, 36, was sentenced after pleading guilty to two counts of wire fraud for making false statements to a mortgage lender when purchasing two houses in Lexington, according to a news release from the Office of the United States Attorney for the Eastern District of Kentucky.
When Hamilton applied for a mortgage to buy a home on Columbia Avenue in December 2005, she lied about her income and her intentions to use the house as her primary residence in order to obtain a $375,000 loan, the release said. The house is now in foreclosure and worth $325,000, causing Wilmington Finance to lose $50,000.
Hamilton also arranged for a close family member's credit card debt to be altered to make the family member eligible for a loan for a home on Oldham Avenue, the release said.
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She then misled the lender, telling it the property was worth $285,000 when it the sale price was $225,000. Wilmington Finance lost $60,000 in that transaction "as a result of Hamilton's misrepresentation," the release said.
U.S. District Court Judge Karl Forester ordered Hamilton to pay $91,000 in restitution.