A former NASA space toxicologist has admitted to orchestrating a multi-year mortgage fraud scheme to purchase and refinance a luxury home in Texas. Noreen Khan, 52, along with her husband Christopher Mayberry, 53, pleaded guilty to falsifying income records, misrepresenting loan applications, and fabricating identity theft claims—all to secure and later wipe away massive amounts of mortgage debt.
Their plan centered around a luxury home in Missouri City, Texas, purchased in 2017 for $850,000. At the time, Khan worked at NASA, and Mayberry was a contractor for the agency through Mori & Associates. But rather than using legitimate income to qualify for the loan, the couple submitted falsified documents and took out large personal loans to cover the down payment.
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Scheme
According to court filings, the couple’s financial trail was riddled with deception. In 2019, they applied for a new $820,000 loan but claimed the home would be used as an investment or for resale rather than their primary residence. This misrepresentation allowed the loan to be approved under false pretenses.
But things didn’t stop there. In 2020, Khan claimed her identity had been stolen in an attempt to dispute the loans on her credit report. She even filed lawsuits against the creditors to remove the debt. As a result, lenders wrote off nearly $277,000 in debt. Investigators later uncovered that the identity theft claims were entirely fabricated.
Alterations
By 2021, the couple refinanced the Missouri City home again, this time for $895,000. During the process, court documents show they altered a bank statement from October 2020 to change the account owner from Khan to Mayberry, presumably to clean up their paper trail. They also forged pay stubs and tax records to make it appear that Mayberry worked directly for NASA, even though he was just a contractor.
All the fraudulent loan applications were signed by Mayberry. Khan eventually resigned from her role at NASA on September 29, 2021—just a week before closing on the refinance.
Consequences
The couple now faces serious federal charges. They could each serve up to five years in prison and pay fines up to $250,000. They must also repay the $276,709 in restitution before their sentencing, which is scheduled for December 18. Additionally, the government may seize their Missouri City home as part of the penalty.
Mortgage fraud is a serious crime with long-lasting consequences. This case highlights how even those in respected positions can fall into the trap of financial manipulation—and eventually face the law.
Trend
Unfortunately, this is not an isolated case. Mortgage fraud is on the rise in the U.S. According to Cotality’s National Mortgage Application Fraud Risk Index, 1 in every 116 mortgage applications in the second quarter of 2025 showed signs of fraud.
Investment properties and multiunit homes are currently the most targeted for fraud. These types of properties often attract buyers looking to make a quick profit, which can lead to more false information being submitted during the application process.
Risks
Cotality’s report broke fraud risk down into six categories:
- Identity fraud
- Transaction fraud
- Property fraud
- Income fraud
- Occupancy fraud
- Undisclosed real estate fraud
The data showed that five of the six categories rose in the second quarter of 2025, with only occupancy fraud showing a decline. The most notable spikes were in undisclosed real estate debt and transaction fraud.
Here’s a closer look:
Year-over-Year Increase in Fraud Risk
| Fraud Type | 2025 Change | 2024 Change |
|---|---|---|
| Undisclosed Real Estate | +12% | -5.9% |
| Transaction Fraud | +6.2% | +4.9% |
| Income Fraud | Moderate | Slight |
| Property Fraud | Moderate | Slight |
| Identity Fraud | Moderate | Slight |
Higher insurance premiums, rising home prices, fluctuating mortgage rates, and a rise in non-qualify mortgage loans are contributing to this uptick. Non-QM loans allow more flexible income and asset verification, which opens the door for fraud if not properly monitored.
States
Certain states have emerged as hotbeds for mortgage fraud. According to Cotality, New York, Rhode Island, and Florida have the highest rates of suspicious mortgage activity. These areas often involve competitive housing markets and a higher volume of investment property purchases, increasing the likelihood of loan misrepresentation.
Outlook
As financial pressures continue, especially with slower-than-expected interest rate cuts, experts believe mortgage fraud risks will persist into 2026. Purchase transactions—known to carry a higher fraud risk than refinances—still make up nearly 70% of mortgage applications.
Lenders, regulators, and credit bureaus are tightening controls, but fraudsters are finding new ways to exploit the system. And as this case with the former NASA scientist shows, fraud isn’t limited to the desperate—it can come from those who seemingly have it all.
FAQs
What crime did the NASA scientist commit?
She committed mortgage fraud using falsified documents.
How much debt was written off?
Lenders charged off $276,709.42 in fraudulent debt.
What sentence could the couple face?
They could face 5 years in prison and a $250,000 fine.
Is mortgage fraud increasing?
Yes, 1 in 116 applications had fraud in Q2 2025.
Which states lead in mortgage fraud?
New York, Rhode Island, and Florida top the list.
