Clearwater house flipper Mark Lepzinski gets 13 months in prison for mortgage fraud
Calling him “a good example of why we are in an economic crisis,” a federal judge on Thursday sentenced Clearwater house flipper Mark Lepzinski to 13 months in prison for lying on applications for loans he knew he couldn’t afford.
“It’s simple greed, and we’re going to see a lot more of it in this court than we should in coming years,” Judge James D. Whittemore told Lepzinski, 51. “The harm occasioned by mortgage fraud is not just economic, it is much broader than lenders simply losing money.”
Lepzinski said he made mortgage payments for years on up to 50 properties, employing many workers as he fixed up distressed properties and “added value to the community.” He said his “business plan” fell apart only when the real estate market collapsed and he was unable to afford the payments or sell the houses.