7th Circ. Vacates Subprime Broker's 12-Year Sentence

Law360, New York (March 17, 2011, 7:35 PM EDT) -- The Seventh Circuit last week vacated a subprime mortgage broker's 12-year prison sentence for defrauding commercial lenders into giving loans to risky borrowers, finding a lower court improperly applied an abuse-of-trust increase to his sentence.

Prosecutors failed to show the broker, Mitchel Fuchs, had a special relationship of trust with the lenders that would have warranted the two-level sentencing increase, the U.S. Court of Appeals for the Seventh Circuit ruled March 11, remanding the case for resentencing.

A jury in the U.S. District Court for the...
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