A Pocatello man and his mother-in-law were each sentenced to five years probation after using false income information to obtain a mortgage loan for a home in Eagle.
U.S. Magistrate Ronald E. Bush ordered Darin John Henecke, 37, and Karen DeWall Shaw, 60, of Chubbuck, to each pay $42,905 to the federal Department of Housing and Urban Development, which guaranteed the loan.
Shaw, who was listed on the mortgage loan application as a co-borrower for Henecke and her daughter, Sarah Henecke, 35, stated she had a monthly income of $2,400. The information was used by the bank to approve the loan on March 13, 2009, according to court documents.
Shaw had previously worked as a secretary, but had not worked since 2007 after contracting multiple sclerosis. She received $1,500 a month in Social Security disability payments, but had no employment income.
The discrepancy came to light shortly after the Heneckes bought the house. Within a few months, they had trouble making their mortgage payments and the loan went into default.
Darin Henecke and Shaw readily admitted the fraud when contacted by investigators, court documents said. Sarah Henecke was listed in court papers as an "uncharged co-participant" and did not face legal action.
HUD suffered a loss of $128,715 in guaranteeing the loan but agreed to accept $85,810 in restitution split among the two defendants.
Darin Henecke will also have to serve 50 hours of community service and is barred from obtaining a new line of credit without the approval of his probation officer.
The case was investigated by the U.S. Department of Housing and Urban Development Office of Inspector General.