A 69-year-old man pleaded guilty today to conspiracy to commit bank fraud that resulted in more than $6 million in losses for banks, according to a release from U.S. Attorney Robert E. O'Neill.
Arthur R. Seaborne of Sarasota faces a maximum penalty of five years in federal prison at his sentencing hearing, which has been scheduled for Jan. 24, the release said.
Starting in March 2003 running through July 2008, Seaborne and others conspired to commit bank fraud and he used several corporate entities to perpetuate the fraud scheme, including Southeast Capital Advisors, LLC, the release said.
Seaborne marketed a "no money down" residential purchase program that made loans to his clients, enabling them to make down payments to purchases of residential properties, the release said.
Then, Seaborne and his co-conspirators prepared and submitted fraudulent mortgage loan applications to lenders for the clients that did not specify that the clients' down payments had been loaned, the release said.
The applications also usually overstated the clients' assets and understated their liabilities, the release said. Some loan applications also included the fraudulent misrepresentation that the clients intended to use the properties as their primary residences, when in fact they were investment properties.
Some of the loans on the residential properties went into default, and the losses incurred by the lenders on 49 such residential properties totaled $6.8 million, the release said.