Man pleads guilty to role in real estate flipping case

He defaulted on loans costing agency $245,143

April 04, 2002|By John B. O'Donnell | John B. O'Donnell,SUN STAFF

A man who played a minor role in a major property flipping scheme pleaded guilty in federal court yesterday to conspiracy to make false statements.

Martin Charles Wyatt of Perry Hall admitted that William Otto Schmidbauer, the head of a Perry Hall real estate company, had used falsified documents to get Wyatt three government-backed mortgages. Wyatt subsequently defaulted, costing the Federal Housing Administration, which insured the loans, $245,143.

Wyatt, 40, became the seventh person to plead guilty in the government case involving Schmidbauer's real estate activities. Seven others, including Schmidbauer, have agreed to plead guilty, according to court records. Prosecutors said the case centers on 58 Baltimore-area real estate transactions where $4.4 million in fraudulent mortgages were obtained

In 1996, Schmidbauer paid $11,000 for an East Baltimore rowhouse and sold it to Wyatt the same day for $49,900. In 1997, Schmidbauer paid $20,000 for a Gardenville house that Wyatt bought nine days later for $79,900.

In the third case, Wyatt bought a Hamilton Avenue house "through" Schmidbauer and his firm, paying $84,000.

In each deal, Schmidbauer got Wyatt FHA-backed mortgages for more than the purchase prices.

Wyatt is scheduled to be sentenced May 24.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.