Myrtle Beach, SC - MYRTLE BEACH, SC (WMBF) - A North Myrtle Beach man has pleaded guilty to conspiracy to commit bank fraud in federal court Monday, according to U.S. Attorney William Nettles.
Evidence presented at a change of plea hearing revealed Gary Albert Hager, 58, was employed as a loan officer at a J.P. Morgan Chase bank in Myrtle Beach. After becoming acquainted with a mortgage broker employed by Dunes Mortgage, an arrangement for the separate sale of four properties in the Myrtle Beach area was made.
The sales, according to investigators, generated mortgage loans submitted by Hager in the amount of $3.3 million to J.P. Morgan Chase and Plantation Federal. Investigators said the loan packages contained applications with false information, false HUD 1 Settlement Statements and inflated appraisals.
After falsely representing to the banks that the properties were valued at more than their actual value, the banks lent excessive funds. Hager and others, officials said, were able to receive excess proceeds at closing to divide among themselves.
Hager is believed to have received approximately $25,000 in kickbacks from Jeremy Eason from August to October 2008.
The maximum penalty Hager can receive is a $1 million fine or 30 years in prison.