BURLINGTON, Vt.—The owner of a defunct South Burlington mortgage brokerage is facing up to 20 years in prison after pleading guilty to a federal wire fraud charge.
Fifty-one-year-old Richard Shumway of Brewerton, N.Y., will be sentenced in November in federal court in Burlington.
Shumway acknowledged defrauding more than 200 home loan customers of nearly $1 million.
All Shumway's victims in the federal case lived in New York.
Prosecutors say the federal charges stem from Shumway's activities after he lost his Vermont brokerage license for similar transgressions.
Prosecutors say Shumway arranged for inflated real estate appraisals so the buyers received larger than necessary loans. Shumway then took some of the extra proceeds.
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Information from: The Burlington Free Press, http://www.burlingtonfreepress.com
