Beltsville man sentenced to four years for mail fraud
Will serve 51 months for role in $3.8M mortgage fraud scheme
A Beltsville man was sentenced Tuesday to more than four years in prison for his role in an alleged $3.8 million mortgage fraud scheme.
Timothy Reed, 44, was sentenced to 51 months in prison and five months of supervised release after pleading guilty to mail fraud. Prosecutors argued that he organized and led a group that from 2006 to 2008 falsified documents to buy 25 properties in Maryland, Washington, D.C., and Virginia.
"He full well knew that he was going to go to jail [after pleading guilty]," said Reed's attorney, Thomas Saunders. Reed faced a maximum of 30 years in prison. "No one wants to go to jail, but he was willing to accept the consequences."
According to Reed's plea agreement, he and several colleagues paid more than 15 people to purchase a total of 25 properties on their behalf, with each buyer receiving $10,000 per property. Reed then created mortgage and settlement documents which included false financial information that often overstated the buyers' income and assets.
Reed and his colleagues also created false invoices claiming that their company, Brotherly Investment Group, made renovations to the properties, which allowed them to receive a refund at closing.
Participants received more than $3.8 million through the scheme, and many of the properties fell into default and were later foreclosed upon.
Reed pleaded guilty in February 2009 and was sentenced Tuesday in U.S. District Court in Baltimore by Judge J. Frederick Motz. Reed was also ordered to pay nearly $4.2 million in restitution.