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Woman sentenced in Dream Homes mortgage scam

Tuesday - 5/15/2012, 3:53am  ET

WASHINGTON (AP) - A judge has sentenced a District woman to more than two years in prison and ordered her to pay $34 million in restitution for her part in a mortgage fraud scheme.

Federal authorities said U.S. District Judge Roger Titus sentenced 53-year-old Carole Nelson on Monday to two years and five months. Nelson pleaded guilty to money laundering in 2009.

She was one of five officers for Laurel, Md.-based Metro Dream Homes who were accused of tricking homeowners into pouring money into the business from 2005 until October 2007. Customers were promised that the revenue would be used to pay off their mortgages. Authorities say the scheme bilked homeowners nationwide out of $78 million.

Prosecutors say the company marketed the mortgage program in seminars at luxury hotels.

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