OKLAHOMA CITY -- A Midwest City man was sentenced Tuesday for his part in a mortgage fraud scheme.
Derrick Reuben Smith, 47, was sentenced to serve 40 months in prison by U.S. District Judge Timothy D. DeGiusti for his role in a conspiracy to commit wire fraud in connection with mortgage loans.
Smith must also serve two years of probation after he is released from federal prison and he will be required to pay $369,355.54 in restitution.
Smith was convicted in April of recruiting two individuals to buy homes at inflated prices and then funneling a portion of the excess mortgage proceeds back to him as commissions and bonuses paid to a front company. The homes ultimately went into foreclosure and each sold for over $100,000 less than the inflated loans Smith had the buyers receive.
Smith's two co-defendants in the scheme had both pleaded guilty. Michael Gipson entered a guilty plea to charges of conspiracy and money laundering on March 30, 2011. Trina Tahir pleaded guilty to money laundering in connection with a property that Gipson purchased in May, 2006.
Each faces a maximum punishment of twenty years in prison and a fine of $500,000, in addition to restitution and forfeiture.