City official arraigned on federal charges
A Uniontown councilman appeared in federal court in Pittsburgh on Friday for a formal arraignment on a federal charge of conspiracy to commit mortgage fraud. According to the indictment filed in U.S. District Court last week, Marlin Sprouts Jr. was charged with the single count of conspiracy to commit mortgage fraud, which included mail fraud, wire fraud, bank fraud and money laundering.
He was charged Friday before U.S. District Judge Amy Hay and remains free on $10,000 unsecured bond.
He was sworn in to office four weeks ago.
He could not be reached for comment Friday.
The indictment alleges that between January 2005 and December 2006 Marlin 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.
Additionally, James Andrew Spike, 43, of 184 Republic Road, Republic, was formally arraigned Friday on a single count of conspiracy to commit mortgage fraud.
Spike also allegedly acted as a straw buyer for Tiffany Lynn Sprouts in September 2005.
Preliminary hearings will be scheduled at a later date.