It’s a twisted tale of a man using a false identity to obtain a loan for a home for which he could not qualify.  Shawn Cannon of St. Louis used a fraudulent Social Security number and inflated income to obtain a mortgage through Pulaski Bank in 2005.  He borrowed $300,000 to buy a primary residence in Florissant, Missouri.

By December 2008, Cannon failed to keep up with his mortgage payments and filed for Chapter 13 Bankruptcy in order to keep his home.  He, again, used the fraudulent Social Security number.  That was his demise.

Federal officials did enough research to discover the fraud, and charged Cannon with several counts of fraud.

Had the man kept up his mortgage payments, he probably never would have been found out.

Cannon pleaded guilty to one felony count each of bankruptcy fraud, bank fraud and aggravated identity theft.  He has been sentenced to serve 60 months in prison.  That’s five years, folks, long enough to lose valuable years with your little ones.

The sentencing was announced by U.S. Attorney Michael W. Reap.

The U.S. Trustee Program referred the case to the U.S. Attorney’s office for investigation.  Reap attributes the success of the investigation to several federal branches of the U.S. Government.

Although Cannon was not caught back in 2005 when he initially used fake information, he probably would be today.  Lenders and mortgage professionals are scrutinizing loan applications more carefully than ever before in order to avert mortgage fraud and foreclosure.  They are also reporting suspected fraud to the feds, so advice to the wise – avoid even the appearance of fraud at all costs.

Buy a home you can afford.  With the drastic decline in home values and all the foreclosures on the market, you should be able to find a bevy of affordable beauties from which to choose.

If you are trying to find a home the old fashioned way, click St. Louis, MO Homes for Sale to find it on Roost.