Fraud schemes involving appraisals continue to be a trend as the Federal Bureau of Investigation and U.S. Attorney for the District of Connecticut announced a trio of investment fraud schemers pleaded guilty to various offenses stemming from two separate investment schemes — totaling approximately $23 million in losses.

They victimized lenders by making multiple false representations in loan applications and other documents provided to the victim lenders. A trained mortgage broker was actively involved in the real estate transactions, including organizing and gathering many of the materials needed by the lenders, gathering certain information from the victim borrowers, providing certain comparables based on properties  to be used for purportedly independent appraisals, and a range of other background tasks necessary for the lenders to make the loans.