Vegas mortgage fraud scheme mastermind sentenced

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LAS VEGAS (AP) — The mastermind of a Las Vegas mortgage fraud scheme has been sentenced to just
over 11 years in prison.U.S.District Judge Gloria Navarro handed down the sentence Wednesday to60-year-old
Lloyd Gardley, who pleaded guilty in August to conspiracyand fraud charges.Gardley was ordered to serve five
years ofsupervised release following his prison term and to pay over $1.4million in restitution.U.S.
Attorney for Nevada Daniel Bogdensays Gardley was considered to the leader of a scheme that caused about$15
million in losses to lenders and financial institutions.Tenpersons were convicted in the scheme that
involved the use of "strawbuyers" and the submission of fraudulent paperwork in order to
obtainmortgage loans between 2005 and 2007.Once the mortgage loans wereapproved, the defendants caused money
from the loan transactions to bedisbursed to their own use and benefit. The defendants typically rentedthe
homes and resold them for a profit, using the same scheme, and thendefaulted on the loans.Prosecutors say
the evidence showed thedefendants used the scheme to purchase 30 homes in Las Vegas, some ofwhich were
"flipped" or sold twice within short periods of time.Copyright 2013 The Associated Press. All
rightsreserved. This material may not be published, broadcast, rewritten orredistributed.

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