Federal prosecutors in court filings say the government plans to try to seize the Florida Gulf Coast vacation condo of Baltimore state attorney Marilyn Mosby if she is convicted of perjury and mortgage fraud.
The top city attorney is charged with two counts of perjury and two counts of mortgage fraud related to early withdrawals from his city retirement account and the purchase of two homes in Florida: an eight-bedroom home near Disney World and the two bedroom condo at Longboat Key.
Prosecutors said in court papers that Mosby lied about the negative financial consequences for making early withdrawals from his retirement account under the CARES Act, then lied about his finances and his plans for Florida properties to get better loan conditions. She and her lawyers have maintained her innocence, saying the charges are politically motivated and that vindictive and racist prosecutors are pursuing the case against her.
Mosby’s trial is scheduled for September 19. The two-term Democrat lost the July 19 primary and is expected to leave office in January.
Prosecutors did not file a notice of proposed foreclosure on the Disney-area home because Mosby sold it to a Baltimore County resident in November 2021 for a profit of $150,000. She bought the house for $545,000.
Mosby still owns the condo, according to online property records, which she bought for $476,000 in February 2021. While Friday’s court filings marked the first time prosecutors specifically said they would try to seize the condo, they said in March they would seek forfeiture of “property constituting or derived from” its alleged criminal offenses.
A. Scott Bolden, Mosby’s lead defense attorney, said the government had “major hurdles” and questioned whether it was appropriate to foreclose on a home she bought with her own money. Although prosecutors argue that Mosby was not legally entitled to make an early withdrawal from her retirement account, which she used for the down payment, it is undisputed that the money in the account belonged to her. .
“It’s nothing more than overzealous, overzealous and over-pursuing my client,” Bolden said. “Nevertheless, I look forward to vigorously and successfully defending Ms Mosby in September against the government’s excesses.”
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Prosecutors challenged Mosby’s purchase of the condo because of her use of retirement funds to make the down payment and because of claims she made to her lender when approved for a mortgage. Unlike private sector employee retirement accounts, government employees cannot access their retirement accounts before retirement unless they stop working for the government or experience an “emergency.” unpredictable”.
Congress temporarily relaxed those provisions under the CARES Act, the first pandemic relief bill, allowing people to make withdrawals from 457(B) accounts if they suffered negative financial consequences at as a result of COVID-19, or if a business they owned had closed or suffered a loss. Mosby’s salary actually increased in 2020, the year she made the withdrawal, and she said in the summer of that year that the companies she owned existed in name only.
Mosby needed $35,699.15 by February 19, 2021 to close the condo. As of Jan. 25, 2021, Mosby had just over $31,000 in his bank account, according to the indictment.
The property’s Zillow listing describes it as an “enviable address” “a stone’s throw from the shore” with wraparound terraces offering views of a landscape designed by a master gardener who is celebrated for its “exterior brilliance.”
Short on a few thousand dollars, Mosby wrote a letter to her lender, saying her husband would give her $5,000 at closing. Known as a gift letter, people often submit them when they are low on funds for the down payment and can get the money from a family member. Gifts must come from the giver and cannot be something the recipient has to repay.
But prosecutors say City Council Speaker Nick Mosby didn’t actually give his wife $5,000. Instead, Marilyn Mosby wired her husband $5,000 just before she got her next paycheck, which, had she waited for it, would have covered what she needed for the down payment. Nick Mosby then transferred the money to his savings account before putting it back in another account and sending it to the loan officer, according to his wife’s indictment. Nick Mosby has not been charged with any crime.
Mosby also failed to note the tax lien against her or her husband on that mortgage application, according to the indictment.