Quincy Dynell Harrington, 40, Corinth, Texas, and Jimila Nicole Allen, 37, Grand Heights, Texas, were charged with money laundering in connection with a mortgage fraud scheme involving six homes in Denton, Mansfield, Cedar Hill and Arlington, Texas. A third individual, Edward Rogers, 41, Midlothian, Texas, was charged in a separate indictment with making a false statement to a federal agent in connection with his purchase of one of the homes.
The indictment alleges that Harrington was a mortgage loan broker, and that he, Allen, and an unnamed conspirator caused mortgage loans to be funded by lenders for amounts in excess of the purchase prices of the properties. This was done by overstating the amount of the purchase prices in loan applications made on behalf of borrowers they solicited to make the home purchases. The indictment alleges the three conspirators used the excess loan funds to pay themselves and to pay kickbacks to the home buyers for making the purchases. The government alleges that the conspirators concealed the kickbacks from the lenders by causing settlement documents to reflect that these sums were owed for fees and services to third parties, and that they caused the kickback payments to be made to business entities that the conspirators controlled.
If convicted, Harrington and Allen face up to 20 years in federal prison and Rogers faces up to 5 years.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force.