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2 plead guilty to falsifying loan application

POCATELLO, Idaho - Two people pleaded guilty in U.S. District Court in Pocatello on Wednesday to making false statements to the Department of Housing and Urban Development, a misdemeanor.

In March 2009, Darin John Henecke, 37, of Pocatello, got a residential loan to finance the purchase of a home in Eagle. The loan application submitted in support of the loan falsely represented that his co-borrower had employment income of $2,400 per month, when in fact she had no income, said U.S. Attorney Wendy J. Olson.

The lender relied upon this information in funding the loan, which was guaranteed by HUD. Shortly after the loan was funded, it went into default and foreclosure, causing HUD to sustain a loss. When interviewed by investigators, Henecke admitted that he knew false employment information was submitted to obtain the loan, according to the plea agreement.

He agreed to pay restitution of $42,905.

Karen DeWall Shaw, 59, of Chubbuck, admitted during an interview with investigators in April 2011that she helped in the fraud by providing false employment information so they could qualify for the loan. According to the plea agreement, false documents included payroll checks, check stubs, a general employment contract and employee confidentiality agreement. Shaw also agreed to pay $42,905 in restitution.

The pair will be sentenced in September at the federal courthouse in Pocatello. They each face up to one year in prison or five years' probation, a maximum fine of $100,000, and up to one year of supervised release.

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