Finleyville resident sentenced to prison for fraudulent loans
A Finleyville man was sentenced to 10 years in prison for operating a mortgage company that brokered more than $30 million in fraudulent loans.
David McCloskey, 49, of School Place, was sentenced Tuesday in federal court by U.S. Chief District Judge Joy Flowers Conti.
McCloskey operated First Atlantic Financial. He is among a group of people accused of preparing loan applications that contained false representations related to the borrowers’ income and assets, and were then supported by fake documents prepared by McCloskey and the others, according to a press release from the Department of Justice.
McCloskey was also accused of preparing fraudulent appraisals that drastically overstated the values of properties serving as collateral for the loans.
The U.S. attorney’s office and the Mortgage Fraud Task Force investigated the case.