If everyone could approve their own loans, buying things would be a snap. However, a 51-year-old Centreville man found out the hard way that that just isn't the case.
AND ON NOV. 9 in Fairfax County Circuit Court, the jury convicted Centreville's Neil Lederman of one count each of forgery and uttering (passing off a fraudulent document as valid).
In a Sept. 29, 2005 affidavit for a warrant to search Lederman's townhouse at 14654 Seasons Drive, Det. Robert Athing of the police department's Financial Crimes Section, presented details of the case against him.
He wrote that, in September 2004, Embassy Mortgage in Annandale hired Lederman as a senior underwriter. His responsibilities were to implement and maintain fraud control in the underwriting and placement of mortgage-loan applications.
Typically, explained Athing, a loan processor would put together a loan application and then submit it to an underwriter for final loan approval. Once the loan application is approved by the underwriter, the loan is approved.
According to the detective, on April 25, 2005, an Embassy employee named Duggan received a fax at the Annandale office. It was from Century 21 Real Estate on Westfields Boulevard in Centreville. Athing stated that the fax was the sales contract and a copy of the loan approval for Lederman to purchase a home on Meherrin Drive in Virginia Run for $775,000.
"Duggan's signature was forged as the underwriter who approved the loan," wrote Athing. "Duggan didn't approve this loan because it is against Embassy policy for an employee to approve his own loan."
The detective further noted that he obtained copies of e-mails between Lederman and Duggan, dated April 28, 2005, "where Duggan reminds Lederman of his corporate policy violation. Lederman asks Duggan to maintain silence about the issue."
Athing also spoke about this real-estate transaction with the agents representing both the seller and Lederman. He noted that Lederman met his Century 21 agent in August 2004 when Lederman visited an open house. And in April 2005, they began the process of purchasing the Meherrin Drive home.
ACCORDING TO Athing, Lederman's agent recalled that Lederman faxed a copy of the forged underwriter's approval on April 23 to another Realtor's office in Centreville. In addition, wrote the detective, "Lederman is currently on probation for recent felony convictions."
Athing wanted to search Lederman's home on Seasons Drive for any and all documents pertaining to his attempt to purchase the property on Meherrin Drive. The warrant was executed Sept. 30, 2005, and police seized copies of the loan and sales contract for that home.
That same day, Lederman was arrested and charged; and on Jan. 17 of this year, the grand jury indicted him. He was slated for a June 13 jury trial but, when he failed to appear, a bench warrant was issued for his arrest.
However, he eventually stood trial Nov. 8 before Circuit Court Judge Robert Wooldridge. The next day, Nov. 9, the jury found Lederman guilty of one count each of forgery and uttering. The jurors also recommended that he serve a year behind bars on each charge. Lederman is scheduled to be sentenced Jan. 19.