Naughty Mortgage Fraud Mom Gets Life Sentence Instead of a Time Out

From North Texas:

A Henderson County woman was today sentenced to 99 years in prison for her role in a mortgage fraud scheme. On Tuesday, a Navarro County jury found the defendant, Kandace Yancy Marriott, 52, of Gun Barrel City, guilty of engaging in organized criminal activity. According to prosecutors, evidence presented at the punishment stage showed Marriott received monthly mortgage payments from her clients, failed to remit those payments to the mortgage lender, embezzled the homeowners’ funds, and therefore caused her clients to default on their home loans. Marriott’s conviction stems from her involvement in a complex mortgage fraud scheme that defrauded the federal government. The scheme’s principal operators were the defendant and her husband, Darrell L. Marriott, 54, who sold manufactured homes through their company, One Way Home & Land. However, the defendants’ daughter, Kally Marriott, and Kandace Marriott’s sister, Karen Hayes, have also been indicted for their role in the scheme. All four defendants face separate charges for related criminal conduct in Kaufman County.

According to state investigators, the defendants illegally forged home buyers’ signatures, inaccurately completed loan applications, and falsified supporting documents, including the buyers’ rent payment verification statements, proof of employment, and Social Security Administration benefits data, among other items. Court documents filed by the state indicate that the defendants conduct was intended to ensure that unqualified home buyers loans were approved by mortgage lenders. The scheme involved predominantly low-income purchasers whose residential loans were guaranteed by the U.S. Department of Housing and Urban Development. As a result, when the unqualified buyers defaulted on their home loans, their mortgage lenders did not suffer financial losses. Instead, HUD – and therefore the taxpayers – had to cover the default costs. Investigators believe the defendants’ scheme cost the taxpayers more than $3 million.

Is 99 years too tough? Some argue about the unfairness of the folks from Enron receiving a lighter sentence for stealing billions while this mom gets 99 years for stealing 3 million. Well, some of those Enron defendants decided to become a witness against others in order to receive a lighter sentence. But we can’t quite compare Mortgage Fraud Mom with Andrew Fastow because I believe a person cannot testify against a relative. Perhaps the horrifying lesson is to always commit fraud with a non-relative.

There will be no public sympathy for what this family has done as long as the economy resembles a slow moving train wreck.  It may take years for some humans to ever begin to trust mortgage lenders (banker, broker, or consumer loan company) again. 

This is just one case of a mortgage fraud family. How many more are out there that we haven’t even begun to prosecute or may never find? 

On the bright side, perhaps she will still be able to see her sister and daughter when they join her in the same prison. 

Even better, maybe 99 year sentences would have the effect of actually deterring mortgage fraud.  The existing set of consequences were clearly not enough.

9 thoughts on “Naughty Mortgage Fraud Mom Gets Life Sentence Instead of a Time Out

  1. To me, a life sentence on mortgage fraud is a little too much, especially that the woman is already 52… I mean, I know she should’ve known better by that age but we can’t really blame her. Tough times call for drastic measures, they say. I can’t help but pity her.

    • She was not desprate by any means. She stole from me and My family and many others that work hard to just try to capture a little part of the American Dream. She took our mortgage payments and put them in her pocket. When we met her she was driving a $60,000 car and her husband was in a $45,000 brand new truck. They stole many peoples livelihood so she needs to have hers taken away as well. Greed is one of the seven deadly sins. So it’s her fate to spend the rest of her life in prison and even in there she will live better then some of the people that she stole from.

  2. That is a bit harsh. Definitely should get some major time, but most murderers, drug dealers, rapist, and other dregs of society don’t get that kind of time. Hell, Madoff probably wont get 99 years. Mortgage fraud is a serious crime, but that sentence is a bit over the top. I know someone who got 15 years for $4 mill in mortgage fraud as a reference for sentencing.

  3. Speaking of mortgage fraud…What ever became of the Lisa Bautista case in Federal Way? She was doing essentially the same thing as this lender was.

    Did she ever go to jail, or pay a fine?

    99 yrs is a bit ridiculous, but at age 52 there probably isn’t much difference betteen 99 yrs and 15 yrs.

  4. Pingback: Mortgage Fraud « So Much More Than A Mom

  5. I would like to see the prosecution and conviction of borrowers that lied about and falsified income on mortgage applications. However, I am not holding my breath given our penchant for victimhood in this country.

  6. I personally know this family and 99 years isn’t enough for what they did. If you were one of the families this happened to you would understand the harm done. If you know that HUD had guaranteed the loans and has to pay them back “the tax payers” – does it seem too long. They did this to a family member I know because I have been hearing the fear and watching the tears. I hope they all rot in prison, along with the appraisers, the lenders, and anyone that helped them with their plotting. Put yourself in their situation, you trust that the Marriott gang were helping get a home then they rape you in the process.

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