Thomas Gregory Alexander, Paul Patrick Alexander and Bobbie Jo Johnson all from Scottsdale, Arizona, Kara Elizabeth Shumway and Michael S Mason both from Mesa Arizona, Sandra M Stevens, Chandler Arizona, and Michael Joseph Harris, Phoenix, Arizona, have all been indicted on charges ranging from Conspiracy, Wire Fraud, Money Laundering and False Statements.
According to the Indictment, Thomas Alexander worked as a loan originator for American Mortgage Specialists and owned and operated a company called Sea Rock, L.L.C. The Indictment claims T. Alexander devised a loan origination scheme where he assisted third party borrowers to qualify for loans from Mesa Bank by creating loan documents that misrepresented the borrower’s income, assets, credit score, and down payment amount.
The Indictment alleges that T. Alexander would use either Sandra Stevens or Bobbi Jo Johnson, Capital Title Agency escrow agents to handle loans he originated by creating and submitting to the bank, an escrow receipt which reflected that the borrowers’ down payment had been deposited into escrow and applied to the purchase. In most cases the borrowers’ down payment had never been deposited into escrow. The Indictment also states T. Alexander would use Kara Shumway and Paul Alexander who worked for American Mortgage Funding as loan processors and was supervised by T. Alexander to assist him in creating documents which misrepresented or overstated the income earned by the borrowers. The Indictment also alleges T. Alexander would direct Michael Mason, who worked as a real estate appraiser under Mason Appraisal Services and Michael Harris who worked as a real estate agent. It is alleged T. Alexander had Mason create real estate appraisals which in most cases overvalued the real estate purchased by the borrowers and that T. Alexander had Harris purchase several lots owned by T. Alexander.
The Indictment states that the object of the conspiracy was to enrich themselves with the fees and commissions they received from each real estate transaction, and by other means, to the detriment of Mesa Bank.
Each conviction for Wire Fraud or Conspiracy carries a maximum penalty of 30 years in prison, a $1 million fine or both. Each conviction for Money Laundering or Conspiracy to Commit Money Laundering carries a maximum penalty of 10 years in prison, a fine or both.
The investigation preceding the indictment was conducted by Special Agents of the Internal Revenue Service, Criminal Investigation. The prosecution is being handled by Kevin Rapp, Assistant U.S. Attorney, District of Arizona, Phoenix.