Six Indicted For $15 Million Mortgage Fraud Scheme

US Dept. Of Justice, Jul 03, 2008

Agencies participating in the Dayton Mortgage Fraud Task Force today began arresting six current or former Dayton-area residents accused of operating an extensive mortgage fraud scheme affecting 210 residential properties, including 205 in Montgomery County, along with 63 investors, and leading to foreclosure of more than 90 percent of the properties.  A federal grand jury indicted the six defendants yesterday.

Six Indicted For $15 Million Mortgage Fraud Scheme

, at prices artificially inflated above legitimate fair-market values.  The alleged scheme involved financing the purchases with $15 million in mortgage loans obtained through fraud committed against 33 lending institutions.  The indictment also alleges that the defendants paid kickbacks to the buyers they recruited, promised to pay for all repair costs to the properties and promised to make the mortgage payments until they located suitable renters. The indictment further alleges that the defendants kept $7 million from the loans for their personal benefit.

In addition, the indictment shows that these six defendants operated and controlled various real estate, mortgage and title insurance-related businesses and corporations throughout the Greater Dayton area including Commercial Property Advisor Group (CPAG), Diamond Vision Capital Group, First Union Appraisals, Gem City Professional Services (GCPS), Option One Appraisals, JMH Real Estate, River City Appraisers, Alliance Mortgage, Gregory Investments Inc., KG Enterprises, Mad River Properties, Premier Mortgage Funding of Ohio, Star Point Mortgage, Ohio Financial Group, Mortgages Unlimited, Allied Mortgage, E & A Investments and KM Investments.