United States Attorney Mary Beth Buchanan announced on August 6, 2008, that Brian Tray, a resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of Conspiracy, Bank Fraud and Wire Fraud.

Tray, age 52, pleaded guilty to four counts before United States District Judge Gary L. Lancaster.

In connection with the guilty plea, Assistant United States Attorney Brendan T. Conway advised the court that Tray worked as a loan officer for, among other places, America’s Mortgage Outlet and Single Source Mortgage.  In connection with numerous loans, Tray submitted loan applications on behalf of borrowers that he knew contained false information related to the borrowers’ income and financial condition.  In addition, Tray submitted fraudulent documents to the lending institutions, including fraudulent Verifications of Employment, Verifications of Rent, and appraisals.

Judge Lancaster scheduled sentencing for November 14, 2008.  The law provides for a total sentence of 75 years in prison, a fine of $1,750,000, or both.  Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.

The Mortgage Fraud Task Force conducted the investigation that led to the prosecution of Tray.  The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry.  Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service.  Other Mortgage Fraud Task Force members include the Allegheny County Sheriff’s Office; the Pennsylvania Attorney General’s Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee’s Office.

Mortgage industry members with knowledge of fraudulent activity are encouraged to call the Mortgage Fraud Task Force at (412) 894-7550.  Consumers are encouraged to report suspected mortgage fraud by calling the Pennsylvania Attorney General’s Consumer Protection Hotline at (800) 441-2555.