6 indicted in Kansas mortgage fraud allegations
Thursday, November 8, 2007 at 10:13AM In the following press release Eric Melgren, United States Attorney for the District of Kansas, announced that s ix people were indicted Wednesday on federal charges of taking part in a conspiracy to fraudulently obtain $14 million worth of loans on homes in the Kansas City area.
Named in the indictment were Wildor Washington, Jr., 37, Leawood, Kan.; Maurice Ragland, 33, Lee’s Summit, Mo.; Victoria Bennett, 34, Leawood, Kan.; Kara E. Robinson-Franks, 37, Grandview, Mo.; Scott Alexander, 69, Merriam, Kan.; and Terrence Cole, 41, Kansas City, Kan.
According to the indictment:
Washington owned Heritage Financial Investments, Legacy Enterprises, B&L Custom Development and Liberty Escrow. Through his companies, he prepared fraudulent loan applications submitted to lenders throughout the country including Hamilton Mortgage of Phoenix, Ariz; First Magnus of Overland Park, Kan.; Aegis Funding Corporation of Houston, Texas; National City Mortgage of Dayton, Ohio; Mortgage Solutions of Kansas City, Mo.; ABN Amro in Ann Arbor, Mich.; and Countrywide Home Loans in Overland Park, Kan.
Maurice Ragland owned TERM Appraisers, The Real Estate Group and JTF Enterprises, which created fraudulent property appraisal reports used to secure mortgage loans.
Bennett was a loan processor for Washington.
Robinson-Franks held herself out as a real estate agent and vice president of operations for Heritage Financial Investments and Legacy Enterprises.
Cole was chief financial Officer for Legacy Enterprises and Treasurer for Liberty Escrow.
Alexander was a licensed mortgage broker who owned Atlantic Mortgage.
According to the indictment, the conspiracy existed from January 2002 through January 2004 for the purpose of enriching the conspirators through obtaining artificially oversized home loans from lenders. Conspirators targeted home buyers with low incomes and limited experience in real estate. They told buyers they could obtain home loans regardless of their credit rating and financial situation.
The conspirators submitted fraudulently inflated real estate appraisals and false financial information to lenders. At or near the time of the closing, the conspirators imposed excessive and unexpected loan origination fees and higher interest rates on borrowers.
The conspirators obtained the identity of licensed appraisers by searching the Internet and appropriating their identifying information and state license numbers. The conspirators also used fictitious identities and license numbers.
Counts in the indictment include:
Conspiracy to commit mortgage fraud (Washington, Ragland, Bennett, Robinson-Franks, Alexander and Cole)
Wire fraud involving a property in the 200 block of Olive, Kansas City, Mo. (Washington, Alexander)
Wire fraud involving a property in the 4400 block of Virginia, Kansas City, Mo. (Washington, Alexander)
Wire fraud involving a property in the 500 block of Sharon Drive, Liberty, Mo. (Washington, Ragland, Alexander)
Wire fraud involving a property in the 4600 block of West 146th Street, Leawood, Kan. (Robinson-Franks, Washington, Alexander, Bennett, Cole)
Another wire fraud involving a property in the 4600 block of West 146th Street, Leawood, Kan. (Robinson-Franks, Alexander, Washington, Bennett)
Wire fraud involving a property in the 12400 block of East 58th, Kansas City, Mo. (Washington, Alexander, Robinson-Franks, Cole)
Wire fraud involving a property in the 4600 block of West 146th Street (Robinson-Franks, Washington, Alexander, Bennett)
Money laundering involving a property in the 500 block of Sharon Drive in Liberty, Mo. (Washington, Ragland, Alexander).
Money laundering involving a property in the 12400 block of East 58th Street, Kansas City, Mo. (Washington, Alexander, Raglan)
Money laundering involving a property in the 4600 block of 146th Street, Leawood, Kan. (Robinson-Franks, Bennett, Washington)
The Internal Revenue Service– Criminal Investigation, the Johnson County Sheriff’s Department, the Overland Park Police Department, and the U.S. Secret Service’s Financial Crimes Task Force worked on the case. Assistant U.S. Attorney Marietta Parker is prosecuting.
Resources:
Press Release
The Editor - Ian Shuter - ACFE, DMS
In his plea, Cole admitted he conspired with Wildor Washington, Jr., and others to fraudulently obtain mortgage loans by submitting inflated property appraisals and other false information to lenders. The conspiracy involved various businesses owned or controlled by Washington including Heritage Financial Investments, Legacy Enterprises, Atlantic Mortgage, Inc., The Real Estate Group, J.T.F Enterprises, Liberty Escrow and AMSTAR Mortgage.
Cole was the chief financial officer of Heritage Mortgage.
The Editor - Ian Shuter - ACFE, DMS
The US DOJ in Kansas has announced that Victoria Bennett, 35, Leawood, Kan., has pleaded guilty to one count of conspiracy to commit wire fraud and money laundering, and one count of wire fraud, Acting U.S. Attorney Marietta Parker said today (3/25/2009).
In her plea, Bennett admitted that from January 2002 through January 2008 she conspired with co-defendant Wildor Washington, Jr., and others to fraudulently obtain mortgage loans. Washington owned or controlled various businesses including Heritage Financial Investments, Legacy Enterprises, Atlantic Mortgage, Inc., The Real Estate Group, J.T.F. Enterprises, Liberty Escrow, AMSTAR Mortgage and Horizon Development. Bennett worked for Washington and processed loans generated by Washington’s businesses.
The DOJ also provided an update on the status of other defendants in the case:
Scott Alexander, pleaded guilty and is awaiting sentencing.
Terrence Cole, pleaded guilty and is awaiting sentencing.
Wildor Washington, Jr., is awaiting trial.
Maurice Ragland, is awaiting trial.
Kara E. Robinson-Franks, is awaiting trial
The Editor - Ian Shuter - ACFE, DMS
Scott Alexander, 70, Merriam, Kan., has been sentenced to one year and a day in federal prison for mortgage fraud, U.S. Attorney Lanny Welch said today.
Alexander pleaded guilty in January to one count of conspiracy to commit wire fraud and money laundering. In his plea he admitted that in 2003 and 2004 he conspired with co-defendant Wildor Washington, Jr., and others to obtain mortgage loans by fraudulent means including submitting inflated property appraisals to lenders.
The Editor - Ian Shuter - ACFE, DMS
Maurice Ragland, 35, formerly of Lee’s Summit, Mo., has pleaded guilty to mortgage fraud charges, U.S. Attorney Lanny Welch said today.
Ragland pleaded guilty to one count of wire fraud and one count of money laundering. In his plea, he admitted that in 2003 and 2004 he conspired with co-defendant Wildor Washington, Jr., and others to obtain mortgage loans by submitting inflated property appraisals and other false information to lenders.
The conspirators targeted borrowers with low incomes and little knowledge of the real estate industry. They urged borrowers to apply for real estate loans that were processed through various entities the conspirators controlled including Heritage Financial Investments, Legacy Enterprises, Atlantic Mortgage, Inc., T.E.R.M. Appraisers, the Real Estate Group, J.T.F. Enterprises, Liberty Escrow and AMSTAR Mortgage.
Many of the real estate appraisals submitted by Ragland and the conspirators contained inflated property values and forged signatures of licensed appraisers whose identities had been stolen. In addition, Ragland and other conspirators acted as home buyers and submitted loan applications containing false income and asset information as well as false information about the appraiser of the property and the intended use of the property.
The Editor - Ian Shuter - ACFE, DMS
Kara E. Robinson-Franks, also known as Kara E. Garrett, 39, Grandview, Mo., has pleaded guilty to mortgage fraud charges, U.S. Attorney Lanny Welch said today.
She pleaded guilty to one count of wire fraud and one count of money laundering. In her plea, she admitted that in 2003 and 2004 she conspired with co-defendant Wildor Washington, Jr., and others to obtain mortgage loans by submitting inflated property appraisals and other false information to lenders. The conspirators targeted borrowers with low incomes and little knowledge of the real estate industry. They urged borrowers to apply for real estate loans that were processed through various entities the conspirators controlled including Heritage Financial Investments, Legacy Enterprises, Atlantic Mortgage, Inc., T.E.R.M. Appraisers, the Real Estate Group, J.T.F. Enterprises, Liberty Escrow and AMSTAR Mortgage.
Many of the real estate appraisals submitted by Robinson-Franks and the conspirators contained inflated property values and forged signatures of licensed appraisers whose identities had been stolen. In addition, Robinson-Franks and other conspirators acted as home buyers and submitted loan applications containing false income and asset information as well as false information about the appraiser of the property and the intended use of the property.
In November 2003, the defendant helped Washington and his girlfriend to fraudulently obtain financing for the purchase of a house valued at approximately $1 million in the 4600 block of West 146th Street in Leawood, Kan. The defendant posed as buyer and borrower even though Washington and his girlfriend were going to live in the house. Washington paid an accountant $75 per page to manufacture fraudulent W2 forms showing that Franks earned more than $200,000 a year working for Washington’s companies, Heritage Financial Investments and Legacy Enterprises. In fact, Franks earned about $50,000 a year working as a manager for AT&T in Lee’s Summit, Mo.
Robinson-Franks is set for sentencing Jan. 11, 2009. She faces a maximum penalty of 20 years in federal prison on each count.
The Editor - Ian Shuter - ACFE, DMS
Wildor Washington, Jr. has pleaded guilty to mortgage fraud charges, U.S. Attorney Lanny Welch said today (11/12/09).
Washington pleaded guilty to one count of conspiracy, seven counts of wire fraud and three counts of money laundering. In his plea, he admitted in 2003 he conspired with other defendants to obtain mortgage loans by submitting inflated property appraisals and other false information to lenders.
Washington also pleaded guilty to wire fraud counts involving the sale of properties in the 2400 block of Olive in Kansas City, Mo.; the 4000 block of Virginia in Kansas City, Mo.; the 500 block of Sharon Drive in Liberty, Mo.; the 4600 block of 146th Street in Leawood, Kan.; and the 12400 block of East 58th in Kansas City, Mo.
He is due to be sentenced on Feb 8th 2010
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