Real Estate Fraud Leads to Jail Time

Donald MacPherson, who pleaded guilty back in November to counts of grand larceny, insurance fraud and other crimes in what was reported as an $82 million scam to defraud mortgage lenders that rocked the East End, was sentenced to serve 4 to 12 years in prison.

“JP Morgan Chase, Bank of America, Wells Fargo and other lenders were swindled by this defendant and his associates who arranged for the filing of mortgage applications that were filled with fraud, specifically false employer information supplied to straw purchasers, forged notary signatures, and falsified powers of attorney and fictional bank balances,” said Suffolk County District Attorney Thomas Spota in a statement.

The Westhampton Beach resident—whose scheme also included his wife Carrie Coakley and ex-county legislator George Guldi—was also ordered to pay restitution of $44 million.