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Otis · by **Otis** on Mon Oct 05, 2009 7:33 am

http://vermontdailynews.com/2009/10/appraiser-sentenced-for-mortgage-fraud/

Gerald Mullaney, 62, of Rensselaer, New York, was sentenced yesterday in United States District Court in Burlington, Vt., for bank fraud in collusion with TSC Funding, a South Burlington-based mortgage brokerage business owned by Richard Shumway.

Mullaney was sentenced to time served following his guilty plea to the charge of bank fraud. Chief U.S. District Judge Williams K. Sessions III also ordered that Mullaney serve a two-year term of supervised release and must pay restitution totaling $138,373.94.

Under conditions of supervised release, Mullaney will serve an additional four months of home confinement and is ordered to perform 100 hours of community service.

Mullaney was a real estate appraiser licensed by New York State. On November 9, 2006, a federal grand jury in Burlington returned a one-count indictment charging Mullaney with bank fraud. The indictment accused Mullaney of falsifying the appraisals he performed for about 100 mortgage loans for homes in northern New York that were financed by National City Mortgage Company. All of these loans were brokered by TSC Funding, a South Burlington-based mortgage brokerage business owned by Richard Shumway.

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Goodpasture · by **Goodpasture** on Mon Oct 05, 2009 8:57 am

140k restitution on 100 appraisals where the average price per home is probably $250,000.......so for $25,000,000 worth of misrepresentation he gets to pay $140k............(take him what....400+ appraisals to pay the fine?)

Steve Owen · by **Steve Owen** on Mon Oct 05, 2009 9:34 am

Goodpasture wrote:140k restitution on 100 appraisals where the average price per home is probably $250,000.......so for $25,000,000 worth of misrepresentation he gets to pay $140k............(take him what....400+ appraisals to pay the fine?)

Yeah, but, what I was noticing is the 2 years plus community service... that seems like a pretty stiff sentence for such a small theft. Guess they are trying to send a message. Good.

...financed by National City Mortgage Company.

I did some work for them back in 2002. A local mover and shaker... new money lady, promoter, I've seen the type before... built a new home that had a pool, and some other over-improvements. I did the appraisal for a local mortgage company, the lady had problems with my opinion, but the mortgage company didn't. Before it was over, she had to modify the design (and, of course, I had to do a new appraisal). Anyway, it was under construction and National City must have gotten the construction loan; not sure how I got hooked up with them except the local company must have given them my appraisal. They sent me back there at least five times to tell them how progress was going. The office I was working with was from Ohio and they paid promptly and didn't give me any pressure problems... so, I guess the ethics problem was with a particular mortgage broker in NY. The end of the story... the mover and shaker's internet-based business didn't do enough to pay for that kind of house and it was later sold. I think she was able to sell it without having to go through foreclosure, so she ought to thank me for putting up with all her bs and still telling it like it was.

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