Former loan officer sentenced on fraud charges

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ST. LOUIS (KTVI) – A 42-year-old local loan officer was sentenced Friday for his role in a scheme to commit fraud through home loan applications.

According to court documents, Joseph Brogan worked for USA Mortgage Inc., where he handled both conventional and FHA home loans. Meanwhile, Michael Wallis owned and operated Missouri Builders and Home Remodeling, which performed interior construction and remodeling work on homes.

Brogan, Wallis and others conspired obtain loans by making false claims on home loan documents. Wallis’ company received payoffs of these loan funds based on false invoices and fraudulent information. Brogan would be paid off using those funds.

Over the course of the conspiracy, prosecutors allege Wallis paid Brogan approximately $94,948.

Brogan pleaded guilty in January to one count of conspiracy to commit bank fraud and two counts of bank fraud. He was sentenced to 14 months in federal prison and ordered to pay more than $350,000 in restitution.