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Couple get federal prison time in mortgage fraud

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By ELAINE SILVESTRINI | The Tampa Tribune

Published: October 26, 2009

TAMPA - The former president of GreatStone Mortgage and his wife, an officer in the now-defunct company, were sentenced to federal prison today for their role in a $79 million Ponzi scheme.

Corey Brower, 40, was sentenced to five years and three months behind bars, and Sandi Brower received three years and four months. Each also must serve three years of probation.

The Browers were ordered to pay restitution along with a codefendant who was sentenced several years ago. In addition to restitution, they signed a forfeiture of assets, agreeing to be accountable for another $79 million.

They both had their possible sentences significantly reduced in recognition of the extensive cooperation they have given the government. For example, Sandi Brower, 46, allowed investigators to record telephone calls, and her husband wore a wire during a meeting with a Philadelphia lawyer so investigators could gather information about the lawyer being an accessory after the fact.

As a result of the cooperation, Assistant U.S. Attorney Robert Mosakowski said he expects the indictment of another person Thursday. He said there also may be charges against more people.

The Browers, who live in Voorhees, N.J., fled to Belize when the scheme and the Tampa-based mortgage company collapsed. At the time, Belize had no extradition agreement with the United States, but the couple returned and voluntarily surrendered.

Sandi Brower now makes money holding parties for Dove chocolate, according to her attorney, Theresa Van Vliet. Corey Brower said he earns his living selling coins.

The couple's gross income is estimated at $10,000, according to U.S. District Judge James D. Whittemore. They have four children.

According to court documents, GreatStone was having financial difficulties in the late 1990s. To ease those problems, the defendants and other officers and employees devised a scheme to defraud the U.S. Department of Housing and Urban Development and financial institutions.

Financial institutions lost an estimated $68.5 million and the federal government about $9.5 million between 1999 and 2001.

GreatStone surrendered its license to do business in Florida in 2003. The company headquarters were in a shopping center at 3627 W. Waters Ave.

Corey Brower's attorney told Whittemore his client "was not in his right mind" when he participated in the scheme because he suffers from bipolar disorder and major depressive disorder.

"He thought he could save the company," Alan Ellis said. "He thought he could make payroll; he thought he could put people in homes. He thought it all could be paid back. It's craziness."

Mosakowski drew the line at recommending a sentencing reduction based on Corey Brower's mental illness.

"They were living pretty well when they were managing the corporation," he said.

Brower later contradicted his lawyer on the issue of what role mental illness played in his crimes.

"I'd like to apologize to the court and to everybody I harmed," he said. "I knew right from wrong. … I'm sorry because I did something wrong and I have to pay for it. My children are going to be the ones who suffer the most. … I would like to apologize to them more than anyone."

Whittemore said the Browers had committed "a fraud of mammoth proportions." He told Corey Brower, "You are an intelligent man; you have a law degree. … Fraud is devastating to our economy, to the victims, to our system of selling real estate."

Whittemore granted a request from the defense and prosecution that Corey Brower be allowed to voluntarily report to prison at least 18 months after his wife to give him time to better prepare their children. Sandi Brower was given at least two weeks to voluntarily report.

Corey Brower asked for drug treatment while in prison and testified about past and present drug problems. He said he smoked marijuana daily from 1988 until quitting cold turkey about two years ago.

At the mortgage company, marijuana was a constant, he said.

"We experimented with each other with other drugs – cocaine, ecstasy, methamphetamines," he said. "It was just a party atmosphere."

Reporter Elaine Silvestrini can be reached at (813) 259-7837.

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