Opinion ID: 682253
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: 2 In April, 1990, Rogers obtained a bank loan of $504,000.00 using false tax returns, false quarterly tax payment checks, and a loan application that misrepresented her income and business interests. Although approved on the basis of false information, the loan was secured with Rogers' home as collateral. At the time of loan processing, the home was appraised at $630,000.00. 3 By October, 1990, Rogers was in default. In an attempt to satisfy her debts and preserve her credit rating, Rogers signed over her interest in her home to an unrelated third-party (Greystoke, Inc.) which agreed to pay the bank loan. Rogers failed to seek approval from or notify the bank. Moreover, rather than pay Rogers' loan, Greystoke transferred the property to other parties who subsequently filed bankruptcy. This series of transactions prevented the bank from foreclosing on the property in a timely manner. The bank finally sold the loan at a non-performing asset auction for $350,032.77 on March 23, 1993. 4 Between the time Rogers transferred her interest in the real property to Greystoke and the time of the final loan sale, her fraud was discovered, and on September 27, 1991, it was reported to the FBI. She was indicted on July 16, 1993, and pursuant to a plea agreement, entered a guilty plea to three of seven counts. 5 At sentencing, the district court applied Sec. 2F1.1(b)(1) of the Sentencing Guidelines which links the defendant's base offense level to the amount of loss connected to the fraud. The district court adopted the probation office's loss calculation of $150,356.51. This figure represented the original loan amount of $504,000 less a prior payment by Rogers of $3,610.72 and less the $350,032.77 recovered by the bank from selling the loan. This loss calculation added seven levels to the offense level. The district court also granted a one level downward departure pursuant to Application Note 7 because the loss appeared to overstate Rogers' culpability. Based on these figures, Rogers was sentenced to ten months in custody.