A former Maryland State’s Attorney Marilyn Mosby must forfeit her Longboat Key condominium, a federal judge ordered Thursday.
By Rachel Konieczny
May 24, 2024 12:24 PM
Greenbelt The former Maryland State’s Attorney Marilyn Mosby must forfeit her Longboat Key condominium, a federal judge ruled on Thursday.
U.S. District Judge Lydia K. Griggsby granted the motion of prosecutors to forfeit Mosby’s condominium, finding that the evidence in trial proves that Mosby would not have been able to buy the property without the gift certificate for which she was found guilty of making deceitful statements regarding her application for a mortgage.
Griggsby decided that, since 10 percent of the purchase price was financed by a down payment, that the same allocation should be applied to any appreciation value of the property. Thus 10 percent of the value should be held by Mosby and the rest of the value should be transferred to the government.
Mosby bought his Longboat Key condo in early 2021, for $476,000. It currently has an estimated price of $886,084 based on an instance of the Mosby court documents.
Griggsby ruled against the counsel of Mosby’s 8th Amendment argument that the forfeiture is inexplicably unjust based on the relative worth of the condominium in relation to the gift certificate of $5,000 which was used to secure her mortgage.
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Although the harm was not done to the lender of mortgages, Griggsby said, there was a risk to the public because of the fact that Mosby was a elected representative at the time. What is the nature of this crime is a serious matter, Griggsby said, and includes false statements given by Mosby as an attorney licensed when he was in the office of a public official.
Prosecutors also requested 90 percent of the rental income that Mosby will earn on the condominium.
Mosby’s lawyer has indicated that they intend to petition the court to halt the forfeiture order until her appeal is in the process.
Maggie Grace, counsel for Mosby in the Thursday hearing that the $5k gift letter was intended to avoid delay in closing. She also said the testimony at trial was not able to prove that Mosby would have been able to obtain an loan without the gift note. The testimony simply proved that Mosby was not permitted to close on her mortgage that time, Grace said.
Grace said that the forfeiture proposed will be “more of a nuanced inquiry” and calls for the court to examine the tainted proceeds as well as the undisturbed funds. In addition, the fact that a lender hasn’t been affected, Grace said, is an additional aspect.
The prosecution also stressed they believed that Mosby was the main person who committed perjury by making an untrue statement to a mortgage company, and was the sole person to gain from these crimes.
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Stephanie Williamson, assistant U.S. attorney, stated that Mosby’s home was bought using the money she received through fraud. “But for” the mortgage, Williamson said, Mosby would not have a condominium or the benefit of appreciation.
Williamson claimed that the value of the gift certificate is an “red herring” because without the gift certificate she wouldn’t have gotten the mortgage.
Griggsby sent Mosby to twelve months’ house confinement and three years of release on supervision for perjury and convictions for mortgage fraud.
Mosby has argued that the government did not prove she could not have gotten mortgage financing on the condo had it not been because of the gift letter. Mosby claims that the forfeiture she is seeking of her home is wildly excessive considering the behavior that led to this conviction. The reason for the conviction is because of the application of a $5,000 gift letter.
The federal court decided to find Mosby guilty of mortgage fraud in February following her earlier being found guilty of perjury during her trial in November last year.
On February 19, jurors determined that Mosby was lying when she wrote an invitation letter in 2021 that claimed her then-husband would gift her $5,000 after she sold her condominium in Florida. In reality, the prosecution said the money came directly from Mosby herself.
The perjury charge was acquitted the jury concluded that Mosby did not disclose an economic loss due to pandemics. She was able to access her retirement account at the city under the CARES Act.
Although a federal judge divided the charges into two separate trials the prosecution said that they were connected: Mosby lied to withdraw the retirement cash that she used to finance payments on two luxurious Florida vacation homes. In addition, she did not disclose her financial situation when she sought mortgages for the properties.
Alongside in addition to the Longboat Key condo, Mosby also bought a home worth $545,000 close to Disney World in Kissimmee in the summer of 2020. Mosby had previously had the house sold Kissimmee property to make an income.
