Four men have pleaded guilty to fraud charges related to mortgage scams that employed fictitious letters of credit (L/Cs).

The L/Cs were used to help secure mortgages in the US state of Carolina.

False documents

The four prepared and submitted loan applications accompanied by falsified and fictitious information regarding employment history, income, and other assets, along with L/Cs.

The conspirators apparently submitted 150 successful loan applications with false and fictitious information. This enabled them to obtain over US$6 million in loan disbursements.

Sentencing

Since the mortgages were essentially aimed at people who could not afford the repayments, all but two of the loans were foreclosed.

Sentencing is scheduled for 20 November.

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