Woman and Her Parents Found Guilty of Bank Fraud, Wire Fraud, Conspiracy To Commit Bank Fraud & Wire Fraud In $3.8M Straw Borrower Scheme
Silver Buckman and her parents, Vincent and Cynthia Foxworth are going to prison for operating a $3.8 million straw borrower scheme.
A jury found the trio guilty of bank fraud and wire fraud. They were also found guilty of conspiracy to commit bank fraud and wire fraud. Their straw buyer scheme caused mortgage lenders to lose approximately $3.8 million.
The defendants ran the straw borrower scheme that offered to help financially-vulnerable individuals save their homes from foreclosure. Instead, defrauded the homeowners and mortgage lenders.
Buckman owned and operated Fresh Start Financial Services (“FSFS”), in Mount Laurel, NJ. She was also an employee of American Home Lending and a mortgage broker for American One Mortgage (“AOM”). Her father is an experienced Realtor.
The Straw Borrower Scam
Buckman and her parents allegedly targeted financially vulnerable homeowners between 2006 and 2009. The family represented to the homeowners that they could improve their credit and save their homes from foreclosure. Buckman and her parents claimed they could provide them with money through Buckman’s lease buyback program.
Homeowners claimed Buckman told them investors would be used to save the homes. The investors were in reality straw borrowers. The homeowners could repurchase the homes in one year or once they regained their financial footing.
The defendants also allegedly induced the homeowners into selling their home assuring the homeowners would remain on the title.
Buckman recruited Vincent Foxworth and Cynthia Foxworth to be the straw borrower in each particular transaction.
She then submitted false financial and employment information about the straw borrower to mortgage lenders.
Buckman prevented the homeowners from receiving the settlement proceeds.
She also did not put money into escrow accounts for the homeowners. Instead, the defendants distributed the proceeds amongst themselves.
Buckman used only a fraction of the homeowners’ monies toward the payment of the mortgages obtained by the straw borrowers. Consequently, the loans went into default.
The defendants each face a potential advisory sentencing guideline range of approximately 87 to 108 months in prison plus restitution.
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