According to court documents filed in the District Court in the Southern District of Iowa on August 11, 2009, Darryl Lee Hanneken (DH) and Robert Edward Herdrich (RH) have been indicted in allegations that they were involved in a scheme to defraud mortgage lenders by supplying false information in mortgage loan applications in relation numerous properties in Davenport, IA.

A previous indictment filed on June 10, 2009 charges Mary Pat Harper with assisting DH and RH in the scheme. She is alleged to have acted as the pairs’ realtor in some of the transactions.

The indictment alleges that Hanneken and Herdrich were assisted by other “certain realtors” and having identified a rental property they wished to purchase Hanneken and Herdrich would negotiate a price for it. When the contracts were drawn up an inflated price would be added to it but an addendum to the contract which would contain the true sales price as well as details of a kick back to be paid to the seller after closing.

The mortgage applications submitted for the purchase of the properties had the inflated sales price and after the kickbacks were paid the properties would be allowed to go into foreclosure.
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Additional Materials

Hanneken and Herdrich Indictment
Harper Indictment
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The 26 properties mentioned in the Hanneken and Herdrich indictment are:

641 W. 64th Street, Davenport, IA – also in the Harper indictment
679 W. 64th Street, Davenport, IA – also in the Harper indictment
6217 Western Avenue, Davenport, IA – also in the Harper indictment
635 W. 64^th Street, Davenport, IA – also in the Harper indictment
1818 Esplanade Avenue, Davenport, IA – also in the Harper indictment
6112 Western Avenue, Davenport, IA
6204 Western Avenue, Davenport, IA
1220 Main Street, Davenport, IA
1228 Tremont Avenue, Davenport, IA
6224 Appomattox Road, Davenport, IA
6232 Appomattox Road, Davenport, IA
6302 Appomattox Road, Davenport, IA
6308 Appomattox Road, Davenport, IA
6314 Appomattox Road, Davenport, IA
640 W. 61^st Street, Davenport, IA
671 W. 64^th Street, Davenport, IA
615 W. 64^th Street, Davenport, IA
665 W. 64^th Street, Davenport, IA
710 W. 61^st Street, Davenport, IA
665 W. 64^th Street, Davenport, IA
6203 Brown Street, Davenport, IA
6212 Brown Street, Davenport, IA
6104 Brown Street, Davenport, IA
601 W. 61st Street, Davenport, IA
615 W. 61st Street, Davenport, IA
6521 Harrison Street, Davenport, IA
6529 Harrison Street, Davenport, IA

The case is being prosecutor by the United States Attorney’s office in Davenport, IA.