Ex-Baltimore Chief Prosecutor Convicted of Mortgage Fraud

Marilyn Mosby, Baltimore’s former chief prosecutor, was found guilty of mortgage fraud on Tuesday.

Guilty of Fraud 

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The federal jury convicted former Baltimore State’s Attorney Marilyn Mosby on one mortgage fraud count, finding her guilty of submitting a false statement on a loan application for a Florida vacation home.

This verdict marks the end of a lengthy trial where Mosby admitted to inadvertently making false statements on loan applications for buying two vacation homes in Florida. 

Mixed Verdict

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After a full day of deliberation, the jury delivered a mixed verdict on Tuesday evening, clearing Mosby of a second mortgage fraud charge, as reported by The Baltimore Sun. 

Guilty of Perjury

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This verdict in Greenbelt comes three months after another jury found her guilty of perjury for falsely claiming financial hardship due to COVID-19, enabling her to withdraw $80,000 from her city retirement fund. 

She is yet to be sentenced in both cases.

Use of Funds for Florida Home

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Mosby used these funds to purchase two Florida properties, collectively valued at nearly $1 million. Upon hearing the mixed verdicts, Mosby, 44, was visibly emotional in court. The guilty verdict specifically related to a ‘gift letter’ where she falsely stated that her then-husband, Nick Mosby, provided funds for purchasing the Longboat Key condo.

From Recognition to Fraud Trial

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Prosecutors contended that she falsified information on her mortgage applications multiple times. Mosby, a two-term state’s attorney in Baltimore, gained national recognition for her progressive approach and several notable decisions, including her charges against officers in Freddie Gray’s 2015 death, which led to widespread anti-police brutality protests. 

However, none of the officers were convicted.

Unsuccessful Re-Election

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Following a federal grand jury indictment, Marilyn Mosby was not re-elected in 2022. Her trial for mortgage fraud, which commenced in mid-January, was shifted from Baltimore to Greenbelt in Maryland, amid concerns that the extensive media coverage might have influenced potential jurors.

Emotional Testimonies

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During the emotionally charged trial, Mosby and her ex-husband, Nick Mosby, the President of Baltimore City Council, gave poignant testimonies. Nick Mosby disclosed that he had concealed their outstanding federal tax debt from Marilyn, feeling ashamed.

Innocence Claimed

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Marilyn Mosby testified that she did not knowingly make any false statements on her loan applications, citing her lack of experience in property purchasing and her trust in her husband and real estate experts during a stressful time. 

Alleged Financial Fabrications

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The prosecution maintained that her omission of this debt on the loan applications was a key factor in the mortgage fraud charges. They also alleged that she lied about a $5,000 gift from her then-husband, which was purportedly used to secure a more favorable interest rate.

The Inside Story

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Marilyn Mosby’s conviction, as reported by The Sun, stemmed from a supposed $5,000 gift linked back to her account. To secure a conviction, prosecutors had to demonstrate that she knowingly made false statements impacting her mortgage application.

End of an Era

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Once a prominent Baltimore couple, the Mosbys, who met in college and have two daughters, divorced last November. 

Another Hurdle 

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In a separate perjury case, Mosby was found guilty of falsely claiming financial hardships to access her retirement funds. Initially, her defense alleged political or racial bias, but a judge dismissed these claims. 

Policy Changes Reversed

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As state’s attorney, Mosby gained national attention for her policy of not prosecuting certain minor offenses, a practice her successor has discontinued.

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