Federal Mortgage Fraud Charges Filed

admin —  May 28, 2010 — Leave a comment

Lloyd H. Gardley, 56, and Candis Gardley, 53, both of Chandler, Arizona; Suzanne McAllister, 32, Las Vegas, Nevada; Arcell Mitchell, Jr., 31, Ft. Riley, Kansas; and Sharon Wagner, 61, Sun City West, Arizona, have all been charged with conspiracy to commit bank fraud, mail fraud, and wire fraud, six counts of bank fraud, and criminal forfeiture in connection with a mortgage fraud scheme.

Lloyd Gardley was president, director, secretary and resident agent of Prolific Management, Inc., a Nevada corporation, and registered agent of Avante Conquest, LLC, a Nevada limited liability company. Lloyd and Candis Gardley were managing members of Excel Consulting, LLC, a Nevada limited liability company. Candis Gardley was president and resident agent of Oakhill Management, Inc., a Nevada corporation. McAllister was an assistant escrow officer and notary at Lawyers Title. Mitchell worked as a loan officer for Valley Mortgage Group. Wagner was a real estate agent for Coldwell Banker Wardley.

The Indictment alleges that from about 2005 to April 2007, the defendants devised a mortgage fraud scheme which involved the use of straw buyers and the submission of false information to financial institutions in order to obtain mortgage loans. The defendants solicited persons to act as straw buyers to purchase real estate, and in some instances, the defendants had the straw buyers purchase multiple houses at or about the same time. The defendants caused to be submitted to the financial institutions mortgage loan applications containing fraudulent information about the straw buyers’ employment, income, assets, liabilities, rental history, value of the property, intent to occupy the homes, social security number, and source of earnest money deposits and costs.

The Indictment lists 28 real property sales transactions involving 21 homes sold in Las Vegas, Nevada between August 25, 2005, and April 18, 2007. Seven of the homes were “flipped” or sold twice within short periods of time. The majority of the homes sold for more than $700,000, and the total value of the mortgages for the 28 transactions was $18.9 million.

Arrest warrants have been issued for the Gardleys and Mitchell. Defendants McAllister and Wagner were summoned, and are scheduled for an initial appearance before a United States Magistrate Judge in Las Vegas, Nevada on Friday, June 4, 2010, at 8:30 a.m.

If convicted, the defendants face up to 30 years in prison and a $1,000,000 fine on each count, and may be required to forfeit up to approximately $4.2 million.

Daniel G. Bogden, United States Attorney for the District of Nevada made the announcement.

This investigation is being led by the U.S. Postal Inspection Service and other agencies of the Southern Nevada Mortgage Fraud Task Force, including the FBI, Office of the Inspector General for the Department of Housing and Urban Development, the U.S. Secret Service, the Las Vegas Metropolitan Police Department, and Office of the Inspector General for the Social Security Administration. The case is being prosecuted by Assistant United States Attorney Brian Pugh.

The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

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