Mortage broker gets nine months for fraud

A former Martinez mortgage broker who pleaded guilty earlier this year to mortgage fraud was sentenced Wednesday to nine months in federal prison.

Walter E. Stuckey Jr., 52, got credit for helping the FBI with other mortgage fraud investigations. Federal prosecutors recommended a sentence reduction for Mr. Stuckey, who faced 12 to 18 months in prison.

Mr. Stuckey was operating as a Realtor and running All-Star Lending in Augusta. For several years Mr. Stuckey falsified mortgage applications, according to the indictment. Of the 13 cases of fraud the FBI uncovered, nine of the purchased homes have gone into foreclosure. The financial institutions were cheated out of more than $114,000.

In the world of mortgage fraud, Mr. Stuckey's case was not a major example, defense attorney Michael Garrett said. Mr. Stuckey inflated clients' financial standing to make them more attractive to lenders, the attorney said.

Assistant U.S. Attorney Carlton Bourne agreed with the assessment that Mr. Stuckey's crime was minor compared with other mortgage fraud cases, but it was still more than $100,000.

U.S. District Judge J. Randal Hall said one of the factors he needed to consider in sentencing was the impression it might have on other citizens struggling to survive the near collapse of the economy brought on, in part, by the housing crisis. And the housing crisis itself can be blamed in part on mortgage fraud, the judge said.

Judge Hall sentenced Mr. Stuckey to serve nine months in prison. Mr. Stuckey will be on probation for three years following the completion of his prison term and was ordered to pay restitution at a minimum of $300 a month during that time. The judge did not impose interest payments on the restitution or a fine.

Mr. Stuckey will remain free on bond until Dec. 1.

Reach Sandy Hodson at (706) 823-3226 or sandy.hodson@augustachronicle.com.