Appraisers' Free Forum

The owner of a defunct South Burlington mortgage brokerage who defrauded more than 200 home loan customers of nearly $1 million pleaded guilty this week to a federal wire fraud charge, the U.S. Attorney's Office said.

Richard Shumway, 51, of Brewerton, N.Y., will be sentenced Nov. 3. U.S District Judge William Sessions continued Shumway's release on conditions.

All Shumway's victims in the federal case lived in New York. The federal charges stem from Shumway's activities after he lost his Vermont brokerage license for similar transgressions, Assistant U.S. Attorney Gregory Waples said Thursday.

Shumway's scheme was to arrange for inflated real estate appraisals for the properties he brokered. As a result, buyers sought -- and banks granted -- larger than necessary loans.

Shumway then helped himself to some of the extra proceeds of each loan.

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One of Shumway's accomplices, real estate appraiser Gerald Mullaney of the Albany, N.Y., area has pleaded guilty to bank fraud. He is awaiting sentencing.

...real estate appraiser Gerald Mullaney of the Albany, N.Y., area has pleaded guilty (emphasis added) to bank fraud. He is awaiting sentencing.