10 Arrested In Mortgage Fraud
Posted on May 27, 2006
Filed Under Home Mortgage, Mortgage Brokers, Mortgage Updates
Ten men were arrested with charges ranging from conspiracy to mail fraud. They scammed millions in a real estate/mortgage fraud in which one person would buy a house, a partner would appraise it at a much higher value and flip it (sell it), usually the very same day.
Patrick McGee, Thomas Griffin, Edward Young and Fransene Berry were charged in a 12-count indictment with conspiracy and mail fraud charges involving 30 fraudulent mortgage loans totaling more than $10 million.
Leroy Garrett was charged with mail fraud in a separate six-count indictment involving five fraudulent mortgage loans totaling about $2 million. Kelvin Brooks was charged with three counts of mail fraud involving two loans totaling more than $500,000.
The other defendants, Marvin Dawson, Anthony Burroughs, Lyndon Posey and Tellis McLin have waived indictment and were charged by information.
Dawson and Burroughs are charged with conspiracy to commit mail fraud involving 30 loans worth more than $10 million, Posey was charged with mail fraud involving three loans worth $1.4 million and McLin is charged with mail fraud involving a loan worth $343,000.
They are accused of “flipping” – the buying and selling of the same property on the same day.
“Flipping homes based upon inflated appraisals is a fraudulent practice which harms not only lenders but those homeowners who live near these properties,” Lampton said.
Lampton and Supervisory Postal Inspector Guy Robinson announced the charges Thursday.
According to prosecutors, McGee, Burroughs, Griffin, McLin, Posey and Garrett purchased homes costing between $200,000 and $600,000; Young and Berry provided inflated appraisals to lenders; Dawson, operating as Premier Mortgage, brokered the loans; and Brooks was involved in purchasing at least one of the properties.
Prosecutors say they then divided the profits – of up to several hundred thousand dollars – from the flip.
Each charge of conspiracy carries a maximum of five years in prison, and each mail fraud charge carries a maximum penalty of 30 years behind bars.
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WHERE DID THIS HAPPEN…WHAT STATE. I WAS LOOKING UP OLD OLD FRIENDS AND CAME ACROSS HIS NAME AND WONDERIN IF THIS IS HIM.