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Former San Diegan Mary Armstrong, mastermind of a $100 million mortgage scam that generated almost $15 million in kickbacks, was sentenced today (Sept. 30) to 100 months in prison. Her former boyfriend, William Fountain, Friday got 42 months.

Armstrong, Fountain, and co-conspirators recruited phony real estate investors and promised to make their mortgage payments. Then Armstrong falsified loan applications for the straw buyers, claiming exorbitant incomes, fake employers and sham companies. She and her assistants got mortgages that were 100% financed. She made few if any mortgage payments and the properties went into foreclosure. She and her cohorts inflated purchase prices of properties by claiming improvements had been made; they had not been. She raked in fat commissions.

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Comments

eastlaker Sept. 30, 2013 @ 11:06 p.m.

At least the two of them were convicted! Any word on what, if any, was repaid?

The sentencing seems a bit light to me, but I am far from being an expert.

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Don Bauder Oct. 1, 2013 @ 6:37 a.m.

eastlaker: Eight years is actually more stiff than usual for white collar crime. I find it encouraging. Best, Don Bauder

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