Charlotte ‘Wax House’ attorney gets 10 years`

houseA Charlotte attorney has begun serving a 10-year prison sentence for her role in the federal mortgage-fraud conspiracy known as Operation Wax House.

Michelle Mallard, 47, is the 89th defendant to be convicted or plead guilty in what has been a seven-year investigation. Mallard was sentenced by U.S. District Judge Frank Whitney of Charlotte late Thursday.

Mallard pleaded guilty in 2013 to conspiracy to commit mortgage fraud and money launder, among other charges.

Prosecutors say the scheme operated out of south Charlotte and Waxhaw. Conspirators bought homes at inflated prices in return for large kickbacks.

Mallard served as a closing attorney for the operation. She accepted worthless checks so it appeared the buyers had made down-payments. Prosecutors say she also stole money from her trust account set aside to pay off a client’s previous mortgage, so the client was making mortgage payments on a house they no longer owned.

While sentencing Mallard, Whitney also ruled that Mallard had committed  attempted to obstruct justice and perjury when she tried to withdraw her plea of guilty. Whitney said the lawyer’s testimony was “brimming with inconsistencies and verbal gymnastics” and ordered Mallard begin her sentence immediately Thursday rather than allowing her to report at a later date.

Five other conspirators sentenced in Wax House include a real estate agent, a builder, a phony buyer, a banker and a mortgage broker. Their prison sentences ranged from 18-46 months. Mallard was the last of six conspirators.

Only two charged in Operation Wax House have not pleaded guilty or been convicted. Both are international fugitives, a spokeswoman for U.S. Attorney Anne Tompkins says.

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