The owner of a now-defunct Vallejo mortgage company has been sentenced in federal court in Oakland to three years in prison and ordered to pay $5.8 million in restitution to banks for her role in a mortgage fraud scheme. Amy Nicole Schloemann, also known as Amy Kinney, 36, of Vallejo, was sentenced by U.S. District Judge Phyllis Hamilton on Thursday for her conviction on one count of conspiring to commit wire fraud.
She pleaded guilty to the charge in August. Schloemann was formerly president of Hiddenbrooke Mortgage Co., a real estate and mortgage brokerage firm that operated in Vallejo between 2005 and 2007. She was one of seven people indicted in 2009 on charges of conspiring to defraud mortgage lenders by recruiting straw buyers to act as purchasers for more than 18 residential properties with inflated prices.
U.S. Attorney Melinda Haag said that as part of the conspiracy, Schloemann supervised others who processed loan packages with false information, including inflated sales prices. Haag said the excess amounts from the loan proceeds, or profits from the transactions, were dispersed through escrow to entities controlled in part by Schloemann.
The U.S. attorney said that all but a few of the properties were foreclosed upon because of failure to make mortgage payments, and the bank lenders suffered significant losses. Schloemann’s former husband, Karim Akil, also known as Scott Kinney, and Akil’s former personal assistant, Michelle McGuire, also entered guilty pleas and will be sentenced by Hamilton in December. Akil pleaded guilty to one count of conspiring to commit wire fraud and one count of making a wire transfer of criminally derived funds. McGuire pleaded guilty to the conspiracy charge.
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