A former Birmingham real estate lawyer was sentenced today to two years in prison for wire fraud in connection with a mortgage fraud scheme that exceeded $1 million.
According to a statement from US Attorney Joyce White Vance, Kelvin Leonard Davis, 42, pleaded guilty in February to two counts of for knowingly submitting false mortgage documents and statements to various lenders in order to obtain approval for mortgage loans. Davis served as the closing attorney on each of the fraudulent loan transactions from October 2007 to January 2012.
The plea agreement alleges that Davis submitted false statements with loan documents in order to obtain approval for mortgage loans that would not have been approved otherwise. In many instances, Davis would use his trust account to provide money to the borrower when a mortgage loan was closing. Then, he'd subtract that amount from the proceeds from he issued to the seller.
He also charged a seller fee ranging from $1,000 to $6,000, and make checks for the fee payable to Peaceful Valley Homes, a corporation he had formed. Total losses to the various lenders as a result of Davis' fraud exceeded $1 million.
As a condition of his plea agreement, Davis agreed to forfeit $269,335 to the government as proceeds of the illegal activity.