Mortgage Lenders Stung in Alleged Scam
All in all, and unbeknownst to the mortgage lenders, the buyers allegedly received about $2 million from the mortgage loan proceeds.
The home purchases were allegedly structured so that a homebuyer would obtain a mortgage loan in excess of the actual price paid to a home seller; the scammers then pocketed the difference between the actual sales price and the inflated mortgage loan amount, according to the indictment brought Friday by a federal grand jury in Kansas City, Mo.
In order to obtain the loan proceeds without the mortgage lenders' knowledge, the indictment says, the scammers created fictitious businesses to issue false invoices; those invoices claimed that the businesses had provided work and services for which they were entitled to receive mortgage loan proceeds.
Real estate agent Leann Raejeana Turner, 41, of broker Carole L. Colson, 68, of Lake Worth, Fla., allegedly listed and arranged for the sale of the homes at inflated prices and solicited the buyers.
In addition to the conspiracy, Turner is charged with 31 counts of wire fraud and one count of money laundering.
The remaining defendants are: mortgage loan officer Anthony E. Hicks, 38, of Little Rock, Ark.; Mark P. Billey, 37, of Buena Park, Calif.; real estate agent Zelda Ann Jackson, 37, of Newbury Park, Calif.; and James Arthur Nash, Jr., 40, Arman Nshanian, 24, and Linda Joyce Henry Johnson, 62, all of Corona, Calif. They were charged in a 35-count indictment returned by a federal grand jury in Kansas City, Mo., on Nov. 19.
Evidence supporting the charges against them will be presented to a federal trial jury to determine their guilt or innocence.
For more on mortgages and related topics see these AOL Real Estateguides:
- Stop Foreclosure Scammers Before They Scam You
- How to Get a Low Mortgage Rate
- Mortgage Jargon in Simple Terms
- How to Buy Foreclosures
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