Dorchester Mortgage Broker Arraigned In Connection With Fraudulently Obtaining Subprime Mortgages For Unqualified Buyers

April 03, 2008 -- BOSTON – A Dorchester mortgage broker was arraigned in Suffolk Superior Court yesterday afternoon on multiple charges in connection with her alleged fraudulent activity in securing subprime mortgages for several unqualified home buyers. Nicole Lyder, age 33, was arrested on Tuesday evening on unrelated charges in Norfolk County. Late last month, she was indicted by a Suffolk Grand Jury. Lyder is charged with forgery (6 counts), uttering (6 counts), making or publishing false or exaggerated statements (4 counts), and larceny of credit by false pretenses (5 counts).

Authorities allege that beginning in November 2005, Lyder engaged in fraudulent activity in order to secure subprime mortgage loans for several home buyers in Dorchester, Randolph, and Taunton. Beginning in April 2006, Lyder was employed by Lehi Mortgage, Inc. (“Lehi”), at the time of this alleged misconduct. The Attorney General’s Office began an extensive investigation into Lyder’s alleged activities after receiving a complaint about Lyder in September 2006. The investigation focused on four mortgage loans that Lyder assisted homebuyers in securing from Fremont Investment & Loan, Inc. (“Fremont”)—two for properties in Dorchester, one in Randolph, and one in Taunton. Specifically, investigators found that Lyder allegedly forged business certificates indicating that the homebuyers owned businesses and therefore had a source of income. Lyder then allegedly submitted those forged business certificates to Fremont on behalf of the home buyers. In addition, in each of the four loans that investigators reviewed, Lyder is alleged to have exaggerated the home buyers’ financial standing on various documents submitted to Fremont in support of the loan applications. As a result of the submission of these forged documents and exaggerated financial statements, Fremont issued four subprime mortgage loans to buyers who in fact did not qualify for the loans and were not in a financial position to repay the loans. Authorities believe that as a result of this alleged fraudulent activity, Lyder collected thousands of dollars in commissions.

In addition to her alleged misconduct with respect to the four subprime mortgages examined by investigators, Lyder is also alleged to have engaged in fraudulent activity in order to secure an automobile loan for a $44,000 Landrover that she purchased. Specifically, investigators found that in July 2007, Lyder allegedly submitted fraudulent bank statements to Sovereign Bank in order to secure financing for the vehicle. Authorities allege that Lyder altered a bank statement belonging to a borrower for whom she had obtained a mortgage loan, making it appear as if it were her own bank statement.

Lyder was indicted by a Suffolk County Grand Jury on March 27, 2007. At that time, the indictments were sealed and a warrant was issued for Lyder’s arrest. Lyder was arrested by Norwood Police on the evening of April 1 on unrelated charges. On April 2, following her arraignment in Dedham District Court on those charges, she was transported to Suffolk Superior Court for arraignment on the indictments. She was arraigned yesterday afternoon before Judge Clerk Magistrate Gary Wilson. At arraignment, Lyder pled not guilty and was held on $500,000 bail. She is due back in court on May 29, 2008, for a pretrial conference.

The prosecutors assigned to this case are Assistant Attorneys General David Waterfall and Renee Dupuis. Financial Investigator Jessie Julian conducted the investigation, with assistance from the State Police assigned to the Attorney General’s Office.

Source: Massachusetts Attorney General