Kevin E. Murphy and Mary R. Murphy, Columbus, Ohio, have been charged in a 71-count indictment for their roles in a multi-million dollar mortgage fraud scheme. The charges in the indictment are related to 26 property transfers executed between 2004 and 2007 with a total loan value of approximately $11 million.
The indictment alleges that the Murphy’s orchestrated real estate “investment” deals with straw buyers and utilized shell companies to divert lender funds to bank accounts that they controlled. The indictment also alleges that the couple forged signatures and tampered with records pertaining to the selling of real estate. The charges against Mary Murphy relate to transactions on four properties. Ultimately, the lenders filed foreclosure actions on most of the properties involved in the mortgage fraud scheme.
The indictment against Kevin Murphy incorporates a previously announced indictment on charges related to his role in similar transactions with 12 co-defendants involving 14 properties. The new charges against Murphy relate to his involvement in an additional 12 property transactions. At the time of the offenses, Kevin Murphy worked as a loan officer for the now-defunct Premier Mortgage Funding, Columbus, Ohio.
Charges against the pair include engaging in a pattern of corrupt activity, theft, attempted theft, forgery, money laundering, tampering with records and receiving stolen property. The Murphy’s are scheduled for arraignment in the Franklin County, Ohio Court of Common Pleas on April 5, 2010.
“Mortgage fraud is complicated to investigate and to prosecute, and ultimately victimizes not only the lenders but also the neighbors in the surrounding communities. It takes cooperative partnerships among various agencies to address these problems, and we’re pleased to have assisted our partners in this effort,” said Ohio Attorney General Richard Cordray
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
This case was investigated by the Central Ohio Mortgage Fraud Task Force, which is composed of local, state and federal law enforcement agencies in the central Ohio area. The task force includes the Columbus Division of Police – Economic Crime Unit, Office of Inspector General for Housing and Urban Development, Upper Arlington Police Department, the office of Ohio Attorney General Richard Cordray, the Internal Revenue Service, the U.S. Postal Inspection Service and the office of Franklin County Prosecutor Ron O’Brien.