Mortgage

Marilyn Mosby indicted for perjury, false mortgage applications

Marilyn Mosby indicted for perjury, false mortgage applications
Written by Publishing Team

A federal grand jury indicted Baltimore City Attorney General Marilyn Mosby Thursday on two counts of perjury and two counts of making false statements on mortgage applications.

Federal investigators allege that Mosby, 41, used money from COVID-related loans to purchase two vacation homes in Florida. They say the democracy falsely claimed under penalty of perjury that it had suffered adverse financial consequences from the pandemic in order to withdraw money from its city retirement account under relaxed restrictions.

Typically, these 457(b) plans, which are exclusive to state and local employees, are untouchable until the employee quits their job. The 2020 CARES Act allowed Baltimore city employees to withdraw from this type of retirement account if the pandemic affected their income.

According to the shipping documents, in May 2020 Mosby requested a one-time withdrawal of $40,000 from her city retirement account, falsely testified under penalty of perjury that she had experienced financial hardship as a result of being “removed, dismissed, or laid off, having reduced working hours”, or “Inability to work due to lack of childcare” or “Closing reduced working hours at the company I own or manage.”

In fact, her 2020 salary was close to $248,000 and was unaffected by the pandemic. “Instead of experiencing lower income in 2020, Mosby’s total salary in 2020 increased from her total salary in 2019, which was $238,772.04,” the shipping documents say.

Mosby received $36,000 in withdrawal money and put it into a down payment for a vacation home in Kissimmee, Florida. The indictment alleges that she lied in order to lower the mortgage rate: she apparently told lenders it was going to be a second home, but a week earlier, she signed an agreement with a vacation home management company to list properties for short-term rental.

It is also alleged that Mosby lied to mortgage lenders about tax obligations. The IRS raised $45,022 in her right in March 2020 for unpaid back taxes, but she did not disclose in the September 2020 application that she owed significant amounts of federal taxes nor that she was in arrears.

She bought the Kissimmee home for a total of $545,000 in September 2020. It was a rental property until she sold it in November 2021 for a profit of $150,000.

Prosecutors say that months later, she paid for another vacation home using another COVID-related loan.

In December 2020, she requested a one-time withdrawal of $50,000 from her city retirement account, again citing the reduced withdrawal restrictions under the CARES Act.

She received $45,000 and put it in a second vacation home, a condo, in Longboat Key, Florida. In her mortgage application, Mosby again failed to disclose to lenders that she was in arrears in federal taxes. She bought the apartment for $476,000 in February 2021.

Number of perjury up to a maximum of five years in person; The penalty for making a false statement on the loan application is up to a maximum of 30 years in prison.

Mosby and her lawyer A. did not respond. Scott Bolden immediately on a request for comment. Bolden said Baltimore Sun that federal prosecutors have a personal grudge against Mosby.

“We will fight these accusations vigorously, and I remain confident that once all the evidence is presented, she will triumph over these false charges – accusations rooted in personal, political, and racial animosity five months after she was elected,” He told the newspaper in the current situation.

She and her husband, City Council Chairman Nick Mosby, have been the subject of a federal investigation since at least February 2021, when the FBI issued subpoenas linked to their financial records.

The investigation began after the city investigated her travels by Inspector General Isabel Mercedes Cumming. Mosby requested the investigation herself, after she came under criticism for failing to liquidate travel paid by third parties, such as nonprofits, with the Baltimore Expenditure Board. The OIG report criticized it, but city attorney Jim Shea said in a legal opinion that the city’s policy on third-party travel financing is unclear.

Mosby’s allies have since criticized the OIG and the FBI’s investigation into the couple.

Mosby was elected as Baltimore’s chief prosecutor in 2014. She accused police officers of killing Freddie Gray in 2015, expanding her national profile as a progressive attorney general. These charges were dropped in 2016.

The Democrat was re-elected for a second term in 2018. She is ready to be re-elected in this cycle.

This story has been updated.

About the author

Publishing Team

Leave a Comment