A former CPA whose license has been suspended by the Oregon Board of Accountancy has pleaded guilty to charges related to mortgage fraud.
Morton Daniel Bohn, 69, of Tigard, Ore., pled guilty on Tuesday in U. S. District Court in Portland, Ore., to bank fraud and money laundering charges. According to prosecutors, Bohn defrauded Countrywide Financial between November 2003 and January 2004 by applying for a $283,200 mortgage to refinance the loan for his Lake Oswego, Ore., residence. Bohn stated on his loan application that his monthly gross income was $5,845 when it was well below that amount.
He also allegedly submitted fraudulent individual income tax returns to his mortgage broker that reported adjusted gross income of $69,892 in 2001 and $77,012 in 2002. However, the actual tax returns that Bohn previously filed with the IRS for those same years reported only $11,940 and $7,556 respectively in AGI.
CPAs are at the top of the list of people who clearly know better than to prepare and submit false income tax returns for any reason," said IRS assistant special agent in charge of Oregon Teri Alexander in a statement. This includes submitting them to financial institutions to further a mortgage fraud scheme.
Also according to the indictment, Bohn engaged in a similar scheme to defraud Silver Falls Bank between October 2006 and April 2007 by applying for a construction loan from Silver Falls Bank to build a home in Salem, Ore. Bohn reported on his loan application that his monthly gross income was $18,500 when it was well below that amount.
He fabricated and submitted fraudulent individual income tax returns to that bank, which reported AGI of $70,889 in 2005 and $137,220 in 2006. However, the tax returns that Bohn previously filed with the IRS reported only $26,778 and $91,681 in AGI for those same years. As a result of the fraud, Silver Falls Bank advanced him at least $288,171, and actually approved him for a $480,000 loan. Bohn defaulted on the construction loan. Silver Falls Bank has since been taken over by the Federal Deposit Insurance Corp., and Countrywide was acquired by Bank of America.
Bohn was indicted in March 2009 on charges of bank fraud, money laundering and making false statements on loan applications, and was subsequently arrested by IRS agents. He has agreed to pay restitution of approximately $288,171.
He faces up to to 30 years in prison and a $1 million fine on the bank fraud charges, and up to 10 years in prison and a fine on the money laundering charges. Sentencing is set for April 6, 2010.
We will continue to seek criminal sanctions for mortgage fraud whenever it arises, particularly when professionals are involved, said Acting U.S. Attorney Kent S. Robinson in a statement.
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