(Published Thursday, June 7, 2007 11:51:11 AM CST)
A d v e r t i s e m e n t
By Mike Heine Gazette staff
James J. Lytle's 2001 application for a loan originator license asks, "Have you ever been convicted of a misdemeanor or felony?"
Lytle marked "No."
On a renewal form signed in 2003, Lytle again answered "No" to a similar question, even though court records indicate he was convicted in Illinois in 1995 of burglary, armed robbery, possession of a controlled substance and theft.
In Wisconsin, Lytle was convicted in 2000 of battery, disorderly conduct and bail jumping and in 2001 was convicted of resisting arrest and bail jumping, according to court records.
Lytle, 33, is suspected in a federal mortgage fraud scheme uncovered in Walworth County.
It is unclear what background check procedures were in place in 2001 or 2003, said Jean Plale, director of License Financial Services Section of the Wisconsin Department of Financial Institutions.
Plale said it's possible Lytle was taken at his word.
The department now checks the state criminal background of license applicants and requires applicants who have lived out of state to provide a copy of their criminal background from that state, Plale said.
A criminal conviction does not necessarily disqualify someone from receiving a loan originators or mortgage broker's license, Plale said.
"We try to be as careful as possible in terms of assessing whether or not the crime is related to the field of mortgage banking," Plale said. "There is nothing in the statute that requires us to automatically disqualify someone who is convicted of a felony.
"If the individual was recently convicted of something involving an honesty-related issue, that is something that is of great concern to us."
Lytle, of W3645 Lortin Place, Lake Geneva, did not renew his license when it expired in 2005, according to Department of Financial Institutions records.
taken at his word.
The department now checks the state criminal background of license applicants and requires applicants who have lived out of state to provide a copy of their criminal background from that state, Plale said.
A criminal conviction does not necessarily disqualify someone from receiving a loan originators or mortgage broker's license, Plale said.
"We try to be as careful as possible in terms of assessing whether or not the crime is related to the field of mortgage banking," Plale said. "There is nothing in the statute that requires us to automatically disqualify someone who is convicted of a felony.
"If the individual was recently convicted of something involving an honesty-related issue, that is something that is of great concern to us."
Lytle, of W3645 Lortin Place, Lake Geneva, did not renew his license when it expired in 2005, according to Department of Financial Institutions records.
