Mortgage broker pleads guilty to defrauding bank AFreehold mortgage broker pleaded guilty on April 3 to one count of bank fraud for submitting fraudulent documents in support of a $367,500 residential mortgage loan application, U.S. Attorney Christopher J. Christie announced. According to a press release, Shawn Brennan, 40, of Freehold, made his first appearance in federal court in Trenton and pleaded guilty before U.S. District Judge Joel A. Pisano to a one-count Information. Pisano released the defendant on a $100,000 unsecured bond pending sentencing, which is scheduled for July 14. At his plea hearing, Brennan stated that in February 2006 he was employed as mortgage broker with Market Yard Mortgage in Freehold and, as such, his duties included preparing and submitting loan applications and supporting documents for clients seeking mortgage loans. Brennan admitted that during that time, he assisted clients, who are identified in the Information only as M.D. and G.D., in applying for a mortgage loan to fund the purchase of a new home. Brennan admitted that the Uniform Residential Loan Application and supporting documentation that he prepared and submitted on behalf of M.D. and G.D. to potential lenders contained false information about M.D. and G.D. Brennan admitted that the false information included representations thatM.D. was employed by the "Brando Construction Company" for a period of more than four years. Brennan admitted that he also submitted a false and fraudulent W-2 form indicating that M.D. had earned $86,400 from the company in 2005, when in fact he knew there was no such company. Brennan admitted that he submitted the false loan application andW-2 form with the intent to defraud the bank that was issuing a loan to M.D. and G.D. U.S. Bank, whose deposits are insured by the Federal Deposit Insurance Corporation, ultimately issued a $367,500 loan to M.D. and G.D. The charge of bank fraud carries a maximum penalty of 30 years in prison and a fine of $1 million or twice the aggregate loss to the victims or gain to the defendant, according to the press release. In determining an actual sentence, Pisano will consult the advisory U.S. Sentencing Guidelines, which provide appropriate sentencing ranges that take into account the severity and characteristics of the offense, the defendant's criminal history, if any, and other factors. The judge, however, is not bound by those guidelines in determining a sentence. Parole has been abolished in the federal system. Defendants who are given custodial terms must serve nearly all that time.