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Harrisburg real estate attorney Michael Sedor will begin serving his prison sentence Nov. 28 for his role in a conspiracy to defraud the government in connection with the Barwood Estates development in Dover Township.
Sedor, 59, pleaded guilty in May 2003. He was sentenced to seven months in prison followed by seven months home confinement, fines of $5,100, and two years of supervised release when he is released from federal custody.
U.S. Attorney Thomas A. Marino said Sedor was the settlement agent for most of the Barwood home sales. He was convicted of defrauding U.S. Department of Housing and Urban Development's mortgage insurance program by disbursing loan proceeds knowing that the seller/developer was providing home buyers with their down payment and closing costs, which is in violation of HUD regulations.
Transfer of the developer's funds was concealed through use of phony gift letters and phony “sweat equity,” which was hidden on the settlement sheets Sedor prepared, Marino said.
Federal judge Sylvia Rambo already has sentenced Barwood Estates owner Gary Sweitzer, 56, Dallastown, to 18 months in jail for his role in the conspiracy. He began serving his sentence in October.
Harrisburg attorney Charles R. Brown, who handled several Barwood closings for Sedor, was sentenced to one year probation with six months home confinement and a $2,000 fine.
Still awaiting sentencing are Brian G. Hoch, Dover, the Barwood Estates sales manager, and Louis N. Fierro, North Carolina, a loan officer previously employed by MNC Mortgage, the principal lender at Barwood.
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