Lubbock man gets 14 months in federal prison for mortgage fraud - KCBD NewsChannel 11 Lubbock

Lubbock man gets 14 months in federal prison for mortgage fraud

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LUBBOCK, TX (KCBD) - Andrew Kent Clark, 50, of Lubbock, Texas, was sentenced Friday morning by U.S. District Judge Sam R. Cummings to 14 months in federal prison, to be followed by five years of supervised release, and ordered to pay $45,434.68 in restitution. In late June 2010, Clark pleaded guilty to one count of making a false statement to a bank.

According to documents filed in the case, in March 2007, Clark and his wife purchased a lot in Llano Estates, a Lubbock subdivision. The purchase was financed by a loan from City Bank, and in July 2007, the Clarks borrowed additional funds totaling over $550,000 to begin construction on the home.

In late 2007, they began the process to finance the house with a mortgage loan and, as a result, in June 2008, City Bank and City Bank Mortgage required Clark to verify assets. On June 8, 2008, Clark submitted a Personal Financial Statement to City Bank showing that he had $750,000 in stocks and bonds, with total assets in the amount of $1,750.350. City Bank and City Bank Mortgage required Clark to verify the stocks and bonds on his Personal Financial Statement and on August 6, 2008, Clark provided City Bank with a document from Wells Fargo Investment that showed he had a brokerage account with a balance of $602,211.

Based on the information provided by Clark, City Bank made a mortgage loan to the Clarks. Subsequently, the Clarks defaulted on the loan and City Bank discovered that there was no investment account at Wells Fargo, and that Clark did not own any stocks and bonds. Clark admitted that he knowingly made a false statement to officers of City Bank, and that it resulted in the loss of $45,434.68 to City Bank.

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