Marilyn Mosby, Baltimore’s former top prosecutor who rose to national prominence for charging six city police officers in the death of Freddie Gray, was back in federal court Monday facing fraud charges related to mortgage documents for two vacation properties in Florida.
The jury trial — which began in the morning with opening statements in a U.S. District Court in Greenbelt — is the second Mosby has faced in recent months, both cases related to the way she purchased those second homes at the height of the coronavirus pandemic in 2020.
On Monday, federal prosecutors told jurors that they will see evidence of seven false statements that Mosby made to two separate mortgage lending companies as she moved to secure funds to purchase one home in Kissimmee, Fla., just minutes from Disney World, and another in Longboat Key, Fla.
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“The evidence will show that the defendant, a lawyer and a public servant, Baltimore’s top prosecutor, lied repeatedly,” Assistant U.S. Attorney Sean Delaney said in court.
Federal prosecutors allege that Mosby failed to reveal on her mortgage applications that she had unpaid federal taxes or that in March 2020 the Internal Revenue Service had placed a $45,000 lien against all properties owned by her and her husband, Nicholas Mosby, who is president of the Baltimore City Council. (Marilyn Mosby filed for divorce in summer 2023).
Mosby also allegedly signed a “second home rider” on her Kissimmee property, prosecutors told the jury, which allowed her to obtain a lower mortgage rate and included a promise that the space would be primarily used by her as a second home. But a week before that, prosecutors allege, Mosby signed an agreement with a vacation property management company to rent the home — which had eight bedrooms, six bathrooms and a pool — which violated the terms of the second home rider.
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During the purchase process for the Longboat Key property, the mortgage lender asked for a letter explaining her planned use for the home. In that letter, prosecutors told jurors, Mosby discussed the Kissimmee house and said she and her family had spent the last 70 days there — but prosecutors alleged that evidence would show she had actually been in Baltimore.
Additionally, prosecutors told jurors that, to secure the Longboat Key property, a gift letter submitted to the mortgage lender — signed by both Marilyn and Nicholas Mosby — claimed Marilyn Mosby had received a $5,000 gift from her husband. But in reality, prosecutors allege, that money originated from Marilyn Mosby’s account, was transferred to her husband’s account, then transferred back to her account.
Delaney said the government’s case will be based upon a “long list of false statements” made by Mosby. He also cautioned the jury against a potential argument they may hear from Mosby’s defense attorneys — shifting blame to her husband for the alleged misconduct.
“Nicholas Mosby is not on trial today,” Delaney said. “Marilyn Mosby is.”
A shift in accountability to her husband — and her mortgage lender and real estate agent — was at the core of Mosby’s defense, which was laid out by defense attorney Sedira Banan.
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Banan told the jurors that these Florida homes were the first Mosby had ever purchased, saying the woman’s name was not even on the deed to the home she had long shared with her husband in Maryland. Mosby, her attorney argued, was a “novice” to the home-buying process who placed trust in her husband, who was responsible for the couple’s taxes, and licensed real estate experts.
“The key to this case is understanding the interplay of trust, human relationships, context and trying to do your best to navigate an unfamiliar world,” Banan told the jury.
She painted Mosby as a woman, wife and mother of two who had faced immense pressures and carried great responsibilities in her personal and professional life.
“People’s life stories are more complex than a job title, a salary, a degree,” Banan said.
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She told the jury that Mosby is innocent.
“The information she supplied for the loan process was submitted in good faith,” Banan said. “It was submitted without criminal intent. She committed no crime. She is innocent.”
Banan told jurors that the government’s “lens has the wrong focus.”
In focusing on the wrong things, Banan continued, prosecutors “will repeat the same mistakes that brought us here today. They will ask you to see crimes where there are none.”
In November, Mosby was convicted of two counts of perjury after she was charged with lying about her finances to withdraw $90,000 from her city retirement account to buy the two Florida homes. Prosecutors argued that Mosby accessed the money through a Cares Act program designed to help people struggling during the coronavirus pandemic. Mosby falsely claimed that she was experiencing financial hardships, prosecutors said.
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In that case, as in the one playing out in Greenbelt now, Mosby denied wrongdoing, saying she didn’t defraud anyone.
As with her case in November, her trial was moved from Baltimore to Greenbelt after her lawyer argued that a jury in the city where Mosby was a controversial prosecutor would not be fair. Mosby became well-known for charging city officers in the 2015 death of Gray, who died one week after being arrested by police following a foot chase in his neighborhood. Mosby drew acclaim by those who said the charges levied were important to holding police accountable, but she was also criticized for prosecutorial overreach when her office failed to convict any of the six.
Mosby served two terms as Baltimore City state’s attorney before she lost the Democratic primary in July 2022.
Dan Morse contributed to this report.
As an expert on legal matters and criminal proceedings, it's evident from the article that Marilyn Mosby, Baltimore’s former top prosecutor, is currently facing federal fraud charges related to mortgage documents for two vacation properties in Florida. This marks her second trial in recent months, both connected to the purchase of these properties during the height of the coronavirus pandemic in 2020.
The key elements in this case revolve around allegations of Mosby making false statements on her mortgage applications to secure funds for the two Florida homes. Federal prosecutors claim that she failed to disclose unpaid federal taxes and a $45,000 lien placed by the Internal Revenue Service on all properties owned by her and her husband, Nicholas Mosby, who is the president of the Baltimore City Council. It's noteworthy that Mosby filed for divorce in the summer of 2023.
Specific instances of alleged fraud include Mosby signing a "second home rider" on her Kissimmee property to obtain a lower mortgage rate, promising that the space would primarily be used as a second home. However, prosecutors assert that she had already signed an agreement to rent the property to a vacation management company, violating the terms of the rider. Additionally, during the purchase process for the Longboat Key property, Mosby is accused of providing false information in a letter explaining her planned use for the home, suggesting she had spent the last 70 days in the Kissimmee house when evidence suggests otherwise.
Further, the government contends that a gift letter submitted to the mortgage lender, signed by both Marilyn and Nicholas Mosby, falsely claimed that Marilyn received a $5,000 gift from her husband. Prosecutors allege that the money actually originated from Marilyn Mosby’s account, transferred to her husband’s account, and then back to her account.
The defense, presented by Mosby's attorney Sedira Banan, focuses on portraying Mosby as a novice in the home-buying process, emphasizing her trust in her husband and licensed real estate experts. Banan argues that Mosby submitted information in good faith, without criminal intent, and insists on her innocence. The defense also highlights the complex nature of Mosby's personal and professional life, suggesting that her actions should be understood in the context of the pressures she faced.
It's essential to note that Mosby had previously been convicted of two counts of perjury in November, related to allegations of lying about her finances to withdraw $90,000 from her city retirement account to purchase the same Florida homes. In that case, prosecutors argued that Mosby accessed the money through a Cares Act program designed to assist those struggling during the pandemic.
These legal proceedings involve complex issues such as mortgage fraud, false statements, and perjury, and the case has garnered attention due to Mosby's prominent role as a former top prosecutor in Baltimore. The trial has been moved from Baltimore to Greenbelt to ensure a fair trial, given Mosby's controversial reputation in her home city.
