Sprouts scheduled for arraignment on federal charges
A formal arraignment is scheduled for Friday morning in Pittsburgh for Uniontown Councilman Marlin Sprouts Jr. on a federal charge of conspiracy to commit mortgage fraud. According to the indictment filed in U.S. District Court in Pittsburgh last week, Sprouts was charged with the single count of conspiracy to commit mortgage fraud, which included mail fraud, wire fraud, bank fraud and money laundering.
He is slated to appear before U.S. District Judge Amy Hay at 9:30 a.m.
Sprouts was released on $10,000 unsecured bond following his arraignment in federal court in Pittsburgh last week.
He is the first black ever elected to serve a full term on City Council. He was sworn in to office four weeks ago.
Sprouts was not available for comment Tuesday.
Uniontown Mayor Ed Fike said Tuesday that while a formal decision regarding Sprouts’ status has not been made, the city is taking steps to follow the necessary procedures to make a determination in such a case.
While Fike reiterated an earlier statement that he has always known Sprouts to be a good man, he said that the city has contacted the state Auditor General’s office for guidance in the matter.
“We are new to this and have not been in this situation before,” Fike said. “We are working on it and learning as we go.”
The indictment alleges that between January 2005 and December 2006 Sprouts acted as a mortgage borrower from two financial institutions in a scheme operated by his daughter, Tiffany Lynn Sprouts of Allegheny County, to skim portions of loan proceeds from real estate purchases.
Tiffany Sprouts operated Sprouts Mortgage and Pope Financial Services Inc. in Pleasant Hills.
Specifically, the indictment alleges that Marlin Sprouts, acting as a straw buyer, applied for mortgage loans to purchase residential real estate in southwestern Pennsylvania in exchange for a portion of the loan proceeds.
The indictment indicates that Marlin Sprouts allegedly received three checks of $9,573 each from his daughter in March, April and May 2006 and deposited the $28,719 into his personal bank account.
The FBI charged Tiffany Sprouts in September with money laundering, bank, wire and mail fraud and obstructing justice.
She pleaded guilty to the charges, according to court records.