Mortgage swindler gets 14 years in federal prison
September 11, 2012
• Had earlier fled to Lebanon after causing $19 Million in losses
• ‘This is a very significant mortgage fraud sentence’
Christopher Warren, 30, formerly of Folsom and currently in federal custody, has been sentenced to 14 years and seven months in prison, ordered to pay more than $19 million in restitution, and will have a three-year term of supervised release when he’s finally let out.
“Mr. Warren’s arrogance and greed led him where is today,” says U.S. Attorney Benjamin Wagner. “This is a very significant mortgage fraud sentence. Warren ran his own mortgage and escrow companies and was instrumental in a number of extensive frauds that affected the financial industry in this country.”
In January Mr. Warren pleaded guilty to one count of wire fraud and one count of aggravated identity theft related to a $19 million fraud scheme, admitting to causing mortgage lenders losses of $12.4 million in connection with his employment at Loomis Wealth Solutions in Roseville. He also admitted separately to defrauding lender Taylor, Bean & Whitaker of approximately $7.4 million.
He was indicted in 2009 and after fleeing to Beirut, Lebanon on a privately chartered jet. Hours before leaving the country, Mr. Warren published a document on his company website claiming responsibility for hundreds of millions in fraudulent mortgage loans and stating that he modeled his business activities on the movie “Boiler Room.”
In the posting, he stated that the government was incapable of reforming the mortgage and securities industry.
“I am the man for the job, Chris Warren, have the management experience, the banking experience, and could assist in the oversight of the most major transformation of mortgage regulation ... and restore confidence in the American dream,” he boasted before running away.
Hours later, traveling on a fraudulently obtained passport, Mr. Warren boarded a plane for Beirut with a bag full of gold bullion he had purchased with millions in fraud proceeds.
He was arrested on Feb. 10, 2009 at the U.S.-Canadian border, attempting to reenter the United States with tens of thousands of dollars hidden in his cowboy boots.
A co-defendant, Scott Cavell, remains a fugitive.