St. Louis Man Indicted in Reverse Mortgage Fraud Scheme

A St. Louis man was indicted for allegedly scheming to defraud an elderly woman using the proceeds from her reverse mortgage, according to the Department of Justice (DOJ). 

Larry Bradshaw, 55, was indicted by a federal grand jury on one felony count of wire fraud and one felony count of theft of government money for obtaining a reverse mortgage on a woman’s home and using the money for himself, including the purchase of a car and illegal drugs. 

In July 2008, Bradshaw met a woman and expressed a need for a temporary residence. The woman agreed to let Bradshaw live with her at the time, which is where he befriended her and gained her confidence, according to the indictment. 

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Suggesting that Bradshaw was acting in her best interest, he used his ability to access her banking accounts and funds to support his own lifestyle without her knowledge or consent. 

Bradshaw allegedly established a durable power of attorney and used it to obtain a reverse mortgage on the woman’s home, representing to Frontier Mortgage that he intended to use the loan proceeds for her living expenses and home rehabilitation. 

Instead, Bradshaw used the money from the reverse mortgage to purchase a car and illegal drugs, totaling more than $70,000, according to DOJ. 

If convicted, Bradshaw faces a maximum penalty of 30 years in prison and/or up to $1 million in fines for one felony count of wire fraud. Additionally, each count of theft of government money carries a maximum of 10 years in prison and/or fines up to $250,000, notes DOJ. 

Written by Jason Oliva

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