Common Law Husband & Wife Sentenced for Mortgage Fraud

admin —  March 29, 2010 — 2 Comments

Mark Kiel, 42, and Codi McArdle, 26, Kansas City, Missouri, were sentenced (Kiel, McArdle) in federal court for their roles in a mortgage fraud scheme that involved dozens of mortgage transactions.

Kiel and McArdle, who are common law husband and wife, were sentenced in separate appearances before U.S. District Judge Ortrie D. Smith. Kiel was sentenced to two years and nine months in federal prison without parole; McArdle was sentenced to 18 months in federal prison without parole. The court also ordered Kiel and McArdle to pay restitution to the victim financial institutions.

On October 22, 2009, both Kiel and McArdle pleaded (Kiel, McArdle) guilty to their roles in a conspiracy to commit wire fraud. They admitted that the conspiracy involved 37 different mortgage transactions with more than 10 different lenders.

Per court information, Kiel, who was a loan broker at First National Mortgage Solutions, and McArdle would have two separate HUD-1 documents prepared during real estate purchases. One document reflected the true sale price of the property, but the second, fraudulent document reflected an inflated sales price that was disclosed to the lender. At the time of the closing, the difference between the true sales price and the inflated sales price would be cut in a check, which would be provided to either Kiel or McArdle. The difference between the actual sale price and what was reported to the mortgage company was referred to as the “spread.” Kiel and McArdle admitted that the total “spread” from 37 transactions was $438,048.

Beth Phillips, United States Attorney for the Western District of Missouri made the announcement.

This case was prosecuted by Assistant U.S. Attorney David M. Ketchmark. It was investigated by the Federal Bureau of Investigation.

Be Sociable, Share!


Posts Google+

2 responses to Common Law Husband & Wife Sentenced for Mortgage Fraud

  1. Do you know what happens when you are arrested and then bonded out with a bail bond?

  2. Harold Barnett March 31, 2010 at 2:49 pm

    It is amazing that they could do this with multiple lenders if all they changed was the HUD1. Did none of these lenders examine the rest of the loan file?

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>