Countrywide Home Loans has lodged a civil complaint in Marion County Superior Court alleging fraud on over 100 properties in Indianapolis and Westfield, IN. The loans were closed between June and December 2005.

The scheme is alleged to have been run by Robert Penn, and his sister Sharon Penn. In yet another example of using churches as a recruiting ground for victims Beulah Penn, Roberts mother, is a lay minister in the small town of Martinsville, VA from where dozens of residents were persuaded to join what was allegedly described as “investment club” to buy real estate in Indiana. 

Instead it appears that the victims details were used on mortgage applications for loans on properties that had over inflated appraisal values. As can be seen in this blog this type of scheme has been seen many times before in such places as North and South Carolina, Georgia, Florida and other areas.

The defendants named in the complaint are:

Robert Penn, Sharon Penn, Tamara E. Scott-Penn, Robert Pollard, Amy Pollard, Susan L. Ruhana, Brian Carrington, Frederick W. Bauter, Land Economics, LLC, Brown Funding, Inc., Showhomes roperty Management, LLC, EU Group, LLC, Griffin Group, Ace Appraisal Services, Inc., People’s Trust Mortgage,

We have pulled together details of this case from a number of sources which you can read/view by clicking on the relevant link:

Video News report from WISH TV8

Written article with pictures from WISH TV 8

Article from the New York Times dated 9/28/2006

The 33 page Civil Complaint

Exhibit A to the complaint – List of properties in Indianapolis
Exhibit B to the complaint – List of properties in Westfield

It is being speculated that a criminal investigation is being or will be pursued, the US DOJ have, quite rightly, so far refused to comment

Update on Monday, October 2, 2006 at 3:30PM by The Editor - Ian Shuter - ACFE, DMS

Another news report from WDBJ7 News - click here to view the video report

Also click here to read about the small Virginia town of Martinsville that has suddenly found itself in the eye of the national press.

Update on Monday, October 9, 2006 at 10:29AM by The Editor - Ian Shuter - ACFE, DMS

On Friday October 6, 2006 ABC’s Nightline program  ran a report by Martin Bashir that features interviews with some of the people who say they were duped into giving personal details which were then used to fraudulently obtain mortgages. It also features pictures and video of some of the properties involved.

The interviews also added to the story in that as well as the victims being brought into the “Investment Club” through their church the fraudsters targetted only African American’s.

Click to watch the Video Report on ABC.

Click here to read the ABC website article by Martin Bashir

In addition WISH TV8 ran an interview with a couple who helped uncover the alleged scam. Click here to view it.

Update on Thursday, October 26, 2006 at 3:08PM by The Editor - Ian Shuter - ACFE, DMS

A Civil Complaint was lodged in the Southern District of Indiana by Amelia Watkins and Linda Hairston against Robert Penn and the other defendants mentioned in the Countrywide complaint. This complaint was filed as a class action suit and is seeking damages is attempting and to get any assests held by the defendants before the court.

Click here for the complaint.