Mortgage

Baltimore state’s attorney indicted on charges of perjury and making false statements on mortgage applications

Baltimore state's attorney indicted on charges of perjury and making false statements on mortgage applications
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By Laura Stadley, Laura Dolan and Malaika Kalingal, CNN

A federal grand jury has indicted the Baltimore District Attorney on two counts of perjury and two counts of making false statements about loan applications to purchase two vacation homes in Florida, according to court documents filed Thursday.

State Attorney Marilyn Mosby is facing charges of perjury over the documents she submitted to apply for loans against her retirement plan in 2020, according to the indictment. In doing so, it allegedly used the opt-out option created under the CARES Act, which was passed to help people financially affected by the Covid-19 pandemic.

According to the indictment, when Mosby applied for two loans against her 457(b) retirement plan, she signed documents indicating she had “suffered adverse financial consequences” due to Covid-19. However, the indictment said her total income in 2020 was $247,955.58, an increase of nearly $10,000 from the previous year.

Mosby received $36,000 in May and $45,000 in December of 2020 from her retirement account, according to the indictment.

According to the indictment, the money Mosby received went to buy two vacation homes in Florida, and she is also accused of making false statements about her mortgage applications.

According to the indictment, she took out a $490,500 mortgage in 2020 and a $428,400 mortgage in 2021, but she did not disclose in the filings that she owed more than $45,000 in federal back taxes.

Additionally, Mosby allegedly stated that she would be the primary resident in a home for at least a year in order to get a lower mortgage rate. The indictment alleges that she had already entered into an agreement with a vacation home management company to rent the house in the previous week.

Mosby’s lawyer said his client is innocent of the charges.

“I remain confident that once all the evidence is presented, she will triumph against these false charges – charges rooted in personal, political and racial animosity five months after her election,” Scott Bolden said in a statement.

If convicted, Mosby faces a maximum sentence of five years in federal prison for each perjury charge and a maximum of 30 years for each count of making false statements in a mortgage application, according to the US Attorney’s Office for the District of Maryland. The indictment says she may also be forced to seize any property fraudulently obtained.

The Baltimore Sun reported that it sold one of the properties in November for a profit of $150,000.

We do not comment beyond what is stated in the indictment. “It speaks for itself,” Marcia Murphy, a public affairs specialist for Maryland attorney Eric Barron, told CNN.

Mosby will appear first in the US District Court in Baltimore, but the date for the hearing has not yet been set, according to the US Attorney’s Office.

Mosby was elected as the state attorney for the city of Baltimore in 2014 and was re-elected in 2018.

It made national news in 2015 for accusing six Baltimore police officers in the death of Freddy Gray, who died in police custody after being shot in the neck while driving unrestricted in the back of a police car. His death became a symbol of the black community’s mistrust of the police and sparked days of protests and riots in Baltimore. None of the six arrested officers have been convicted.

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