Michael Milan, a former loan broker from Maryland, has admitted to his involvement in a multi-million dollar mortgage fraud scheme and pleaded guilty on Tuesday to conspiracy to commit mail and wire fraud.

Through his conspiracy, fraudulent loan applications were submitted for the purchase of 11 different properties and causes losses between $2.5 million and $7 million.

Milan confessed that he was a consultant to various mortgage brokerage companies and conspired with others to defraud mortgage lenders into lending funds for the purchase and refinance of residential properties, according to a statement of facts filed with his plea agreement.

He caused associates to prepare false mortgage applications containing fabricated information about the income and assets of the borrowers. In some instances, mortgage applications falsely claimed that borrowers earned hundreds of thousands of dollars from Collid LLC, a company controlled by Milan.

In addition to admitting his involvement in the mortgage fraud scheme, Milan also acknowledged his attempt to obstruct justice with false documents. Following the execution of a search warrant of his office in June 2008, Milan fled the United States and did not return until April 2009. During the detention hearing held after his return, Milan tried to justify his extended leave by providing fraudulent Iranian court documents, claiming he was incarcerated in Iran during the summer of 2008.

Milan, who is the sixth defendant convicted by the investigation, faces a maximum penalty of 20 years in prison during his sentencing on February 12, 2010. As part of his guilty plea, Milan has agreed to pay $3,141,409 in restitution and will forfeit $1,061,890.31 in proceeds he obtained.