Local man gets 37 months in mortgage fraud scheme

CINCINNATI (FOX19) - Eric Philpot, 41, of Cincinnati, was sentenced in United States District Court Thursday to 37 months imprisonment for a scheme he ran that defrauded mortgage lenders out of more than $200,000 in less than two years.

The sentence was handed down by Chief United States District Judge Sandra S. Beckwith.

Philpot pleaded guilty on June 17 to one count of mail fraud and one count of conspiracy to commit money laundering. Philpot solicited people to buy residential properties and helped them secure financing by providing lenders with false information about the buyers' income, source and scope of the down payments and other information.

Additionally, Philpot failed to disclose to the lenders material information about the true nature of the real estate deals so that appropriate business decisions could be made by the lenders.  Philpot admitted that, once the loans were approved, he maintained control both of the properties which were often deeded in the name others and the loan proceeds.  These actions led to losses for the lenders.

Philpot also fraudulently obtained financing for the sale of one property while he knew he was under federal investigation for mortgage fraud.

Judge Beckwith scheduled a hearing for Feb. 2, 2009 to determine the amount of restitution Philpot must pay. That is also the day he is to report to the U.S. Marshals Service to begin serving his prison sentence.