EASTON, Conn. – An Easton man was sentenced to one year in prison and other penalties Tuesday for his role in a mortgage fraud scheme that took about $2 million from lenders, according to U.S. Attorney David Fein.
Fred Stevens, 58, of Easton, helped file mortgage applications for William Trudeau Jr. out of his Westport brokerage, Fein’s office said in a statement. Trudeau and others applied for mortgage applications on properties they owned in order to develop those properties for profit to pay off existing debts, the statement said.
Their applications did not reveal their existing debts, hiding their inability to pay, Fein said. As a result, lenders lost more than $2 million on the mortgages, according to the statement.
Stevens filed eight applications for Trudeau and was paid more than $130,000, the statement said. He pleaded guilty to bank fraud in 2008, Fein’s office said in a statement. Stevens was ordered to pay more than $2 million in restitution.
Stevens also testified in the trial against Trudeau, Fein said. Trudeau was found guilty of wire fraud and conspiracy charges last fall, and in February he was sentenced to 16 years in federal prison.
Stevens was sentenced to one year and one day in prison. He will also serve three months of house arrest after his sentence and three years of supervised release and pay a $7,500 fine.
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