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A woman from Atlanta, Georgia, was given a decade-long prison sentence upon being convicted of a scam leading to the deceitful procurement of loans exceeding $2 million from 10 credit unions and other financial establishments. The Eastern District of Tennessee’s U.S. Attorney’s office in Knoxville announced this verdict.
Wynde Collins, aged 56, received her sentence on 8th June, following her conviction on eight felony charges relating to bank fraud, conspiracy for the same, and money laundering.
During a probe into a large-scale drug trafficking ring, federal officials uncovered Collins’s loan scam. The fraudulent activities spanned June 2014 to December 2019, involving fake employment, income, and collateral data on loan applications for mortgages and automobiles from credit unions.
Federal prosecutors stated that upon the loan funds being received, Collins instructed others, including her accomplices, to launder the money. The cumulative sum of deceitfully procured loans surpassed $2 million.
Along with Collins, Alvin Johnson co-conspired in the fraud. Johnson, an automobile broker, pleaded guilty and is due for sentencing on 7th July. He established several sham car dealerships and managed their bank accounts. These fraudulent entities were listed as car sellers on loan applications. Upon the approval of these applications, the funds were deposited into accounts controlled by both Johnson and Collins.
Collins was also revealed to have successfully applied for and received a mortgage from Alcova Mortgage LLC, subsequently absorbed by Wells Fargo. False information was present in the application, though the total mortgage value remains undisclosed.
The scam resulted in financial losses for ten credit unions, each of varying asset values.
Collins received orders to pay $855,374 in restitution together with surrendering $100,000 of her fraudulently obtained funds.
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Frequently Asked Questions
What is a loan fraud scheme?
A loan fraud scheme involves the deception of financial institutions to secure loans under false pretenses, such as using counterfeit information on applications.
Who was the woman involved in this loan fraud scheme?
The woman involved in this loan fraud scheme is Wynde Collins from Atlanta, Georgia. She was sentenced to ten years imprisonment for her crimes.
How was the loan fraud scheme uncovered?
The loan fraud scheme was discovered during a federal investigation into a large-scale drug trafficking organization.
