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LOCAL NEWS

Former Beach Schools CFO gets 5 years for fraud

05:22 PM EST on Monday, November 20, 2006

By 13News

The former CFO of Va. Beach Schools was sentenced Monday to more than five years in prison on fraud charges.

Mordecai L. Smith, 46, pleaded guilty in August to aggravated identity theft, bankruptcy fraud, and wire fraud.

According to a release from the U.S. Attorney’s office, Smith had been involved in a series of fraud schemes that included filing fraudulent bankruptcy petitions to avoid foreclosure on his former residence in Virginia Beach, and defrauding a mortgage company into funding a $360,000 loan to purchase a home in which he resided by convincing another individual to apply  for the loan in that person’s name.

Smith also submitted fraudulent documents to the mortgage company which falsely claimed the individual worked for his company earning $90,000 per year, and defrauded a neighbor out of $27,000 by falsely promising the neighbor the funds would be used to invest in a $10 million dollar apartment complex in Atlanta, Georgia.

A federal judge will decide early next year whether Smith will have to pay back his victims.