Edward Johnson, 52, pleaded guilty Monday to bank fraud and six counts of wire fraud before United States District Judge Denise Casper. He will be sentenced on June 27th for his involvement in a property flipping scheme that dates back to 2006.
According to court documents, in 2006, Johnson recruited two people to buy properties in Dorchester and Mattapan. To ensure the individuals participation in this scheme, Johnson promised them that they would not have any responsibility for the expenses or payments on the properties. He also claimed they would be receiving payments after the buildings were improved and sold. Prosecutors said the buyers believed the transactions would improve their credit so they would eventually be able to buy their own homes.
Johnson and others submitted fake mortgage documents on behalf of the buyers, lying about their income, employment, debts, and intention to reside in the purchased properties. The mortgages were not paid as promised and all of the properties went into foreclosure
On the charge of bank fraud, Johnson would face a maximum sentence of 30 years in prison, followed by five years of supervised release and a $1 million fine. For wire fraud, the sentence is a maximum of 20 years in prison, followed by three years of supervised release and a $250,000 fine.