Greenleaf Co-Owner Sentenced in Multi-Million Dollar Mortgage Fraud Scheme

By KOLR10 News

Published 07/31 2014 02:40PM

Updated 07/31 2014 06:14PM

SPRINGFIELD, Mo. – A co-owner of Greenleaf Companies has been sentenced for aiding and abetting a bank fraud conspiracy as part of a multi-million-dollar mortgage investment scheme.

Eric Gagnepain, 41, of Nixa, was sentenced to four years in prison without parole and ordered to pay $2,911,214 in restitution.

Gagnepain pleaded guilty to conspiracy to commit bank fraud on Jan. 9, 2014.

He co-owned and operated Greenleaf Companies and all subsidiaries, alongside Scott Dasal, 47, of Republic, from 2006-May 2008.

During that time period, Greenleaf sponsored real estate investment seminars that were designed to recruit potential investors to apply for mortgage loans for construction and sale of residential homes in southwest Missouri and northwest Arkansas.

According to U.S. Attorney Tammy Dickinson, Gagnepain admitted that he aided and abetted others in the creation and submission of fraudulent mortgage loan documents. The mortgage loan documents contained false statements on the true source of money provided at the time of closing. The documents also omitted the payment of money obtained from the sale of the real estate properties.

Dasal was sentenced on Nov. 21, 2013, to three years in federal prison without parole and ordered to pay $2,911,209 in restitution. Dasal pleaded guilty to aiding and abetting a bank fraud.

Dickinson says Gagnepain derived more than $1 million in gross receipts from his criminal conduct. The total loss amount resulting from the bank fraud conspiracy is between $2.5 million and $7 million.

Gagnepain's plea agreement cites a specific instance of such fraud that occurred on March 12, 2008. Gagnepain and others created false mortgage loan documents that were submitted to Flagstar Bank.

The loan documents fraudulently stated that the borrower had provided their own money at the time of the closing. In reality, however, Greenleaf provided money that was falsely identified as "cash from borrower."

Additionally, the loan documents omitted the fact that Greenleaf would receive money from the sale of the real estate property from the seller. If Flagstar Bank had known the true source of the money provided on behalf of the borrower, or that Greenleaf was receiving money from the sale of this real estate property, the bank would have denied the mortgage loan application.

Under the terms of his plea agreement, Gagnepain was required to also plead guilty to state charges. The sentence in the state case will be served concurrently with the federal sentence.

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