MADISON, Wis. (WTAQ) - The head of a former Madison brokerage firm has been charged in a mortgage fraud scheme. Prosecutors say 44-year-old Brian Bowling of Sun Prairie is expected to plead guilty next Friday to a federal wire fraud charge.
Two former loan officers and 2 borrowers have also been charged – and one of the borrowers is the only one not to plead guilty or agreeing to do so yet. Bowling ran Platinum Concepts, a brokerage firm that’s now out of business.
Federal prosecutors said the 5 used false and exaggerated information to get banks to loan money to the borrowers. Earlier reports said almost $1.75 million were loaned on the basis of the false information – and even after the lenders sold collateral, they still lost $434,000.
Loan officer Joseph Bowman of Black Earth pleaded guilty this week, along with borrower Joshua Hughes of Madison. The other loan officer, Jason Khodadad of Madison, is expected to plead guilty next Tuesday. A plea hearing for the other borrower, Richard Hurkman of Oshkosh, has not been set yet.