Northern Virginia Mortgage Banker Sentenced to Five Years in Prison

Northern Virginia mortgage banker Gohar J. Mirza has been sentenced to five years in prison (63 months to be precise) for conspiring to commit mail and wire fraud in connection with a mortgage fraud scheme.  His prison sentence will be followed by three years of supervised release and restitution of more than $3 million.

Mirza, who is 29, was the owner/operator of E-Star Lending, Inc. a mortgage brokerage company located in Burke and Annandale.  Mirza and his co-conspirators profited by selling residential real estate in the Northern Virginia area from approximately April 2005 to July 2008,  to individuals referred to as “straw buyers.”

E-Star Lending helped these “straw buyers” obtain 100 percent mortgage financing to purchase properties by producing fraudulent loan applications which included materially false statements about the buyers’ employment, income, and other factors that lenders look at in deciding whether or not to make a loan.  Not surprisingly, these “straw buyers” frequently defaulted on their mortgages.

Greed is a wicked bed fellow – and so is the aftermath.