For 10 years, Darryl S. Paxton Jr., assumed a fictitious identity and submitted falsified loan applications as part of a $1.8 million mortgage fraud scheme in Maryland, according to court records.
Paxton — who also goes by the name David Sosa — has been indicted by a grand jury in U.S. District Court in Greenbelt. He is charged with 15 counts, including wire fraud, money laundering and fraudulent use of a Social Security number.
Paxton used fake identification to create loan applications that he used to defraud four lenders — three based in Maryland — of more than $1.8 million, according to the indictment.
He then used the proceeds of to buy a Lamborghini and other luxury vehicles, as well as to make purchases at Nordstrom, Neiman Marcus, the Plastic Surgery Center and the Big Screen Store, prosecutors said.
Between 1997 and 2007, Paxton used the identification, including the Social Security numbers, of two people with the initials D.E.B., according to the indictment.
He also assumed the fictitious name David Sosa, and created or obtained identification in Virginia, Maryland, D.C. and Georgia under that name, the indictment says.
Court documents allege that Paxton submitted fraudulent loan applications to the four lenders using a false name, Social Security number and information about his employment, income, address and property ownership.
He used some of the proceeds from the loans to repay part of previous loans, the indictment says, but “left most of the loans substantially or completely unpaid.”
The lenders were the Rockville-based Vision Mortgage, Towson-based AmericasBank Corp., Bowie-based Granite Finance and Massachusetts-based Dynamic Capital Mortgage.
Prosecutors say Paxton fraudulently obtained more than $2.85 million in loans at a cost of $1.8 million to the lenders.
No lawyer was listed for Paxton in online court records Friday.
The indictment, filed in July, was unsealed late last week after he was arrested in Broward County, Fla.
Paxton is detained in a Florida jail pending transfer to federal court in Maryland.
If convicted, he could face up to 30 years in prison for wire fraud, five years in prison for the fraudulent use of a Social Security number and 10 years in prison on each of the five counts of money laundering.
