Former loan officer sentenced to prison for $45 million mortgage fraud scheme

Former loan officer sentenced to prison for $45 million mortgage fraud scheme

(WCSC) - A Virginia man with ties to the Lowcountry will spend the next thirty months in prison thanks to his role in a multi-million dollar mortgage fraud scheme.

Steven F. Weiss, age 67, of Virginia Beach, Virginia was sentenced on Wednesday in federal court in Charleston, South Carolina for Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud.  U.S. District Judge Richard M. Gergel sentenced Weiss to 30 months in federal prison. Weiss will also serve three years of supervised release after he is released from prison (the first twelve months under electronic monitoring) and will pay restitution in the amount of $4,961,732.

Evidence presented at Weiss' change of plea hearing established that he took part in a mortgage fraud conspiracy that used real estate and mortgage businesses operated in Summerville, South Carolina under the names North American Mortgage Group, LLC; Realty Executives of Coastal Carolina; and New Freedom Enterprises, LLC.

The scheme involved more than 70 properties, approximately $45 million of mortgage loans, and a loss of more than $23 million suffered by financial institutions.

The properties were located in Charleston, Johns Island, Ladson, Mount Pleasant, Summerville, Edisto Island, St. Helena Island, Garden City, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Lake Keowee, and Tybee Island, Georgia.

Weiss worked as a loan officer for North American Mortgage Group, LLC and was directly involved with at least 13 of the properties involved in the scheme. The losses associated with those 13 properties totaled $4,961,732.

Two other defendants were indicted in December in connection with the scheme and their cases are pending.

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