Five Have Entered Guilty Pleas in Mortgage Fraud Scheme

admin —  May 14, 2009 — Leave a comment

Edward McGee, 74, pleaded guilty to conspiracy to commit money laundering and Kenneth O. McGee, 49, pleaded guilty to one count of conspiracy to commit mail fraud, wire fraud and money laundering, and one count of conspiracy to commit money laundering. The charges reflect their roles in an extensive mortgage fraud scheme that affected 210 residential properties, including 205 in Montgomery County, Ohio.

In court, both men admitted that they were part of the conspiracy that operated and controlled various real estate mortgage and title insurance related businesses and corporations with the object of entering into a scheme to defraud in order to wrongfully obtain monies, profits, real property and other things of value.

Each man admitted that he had helped arrange, facilitate and manipulate documents associated with real estate sales and closings in order to fraudulently obtain excess mortgage loan proceeds generated from the sale of residential properties for the personal benefit of the defendant and his co-conspirators.

With the two pleas, five people have pleaded guilty to participating in the scheme that took place between March 2002 and June 2008.

Julian M. Hickman, 31, formerly of Centerville and now living in East Cleveland, Ohio, pleaded guilty on December 15, 2008 to conspiracy and tax crimes.

Robert Mitchell, 42, Vandalia, Ohio, pleaded guilty on March 11, 2009 to one count of conspiracy to commit mail fraud, wire fraud and money laundering, and one count of conspiracy to commit money laundering.

Kamal J. Gregory, 34, Centerville, Ohio, pleaded guilty April 14, 2009 to one count of conspiracy to commit mail fraud, wire fraud and money laundering, and one count of conspiracy to commit money laundering.

The conspirators used various business names including “Commercial Property Advisor Group“, “Diamond Venture Capital Group“, “Gem City Professional Services“, “First Union Appraisals“, “JMH Real Estate“, “E & A Investments“, “E & A Contractors“, “K M Investments“, “Midwest Alliance Commercial“, “K & M Auto Sales LLC“, “All-City Title Agency, Inc.“, “Partners Land Title“, and “NETCO.”

According to media reports, “[t]he U.S. Attorney’s Office said that Partners Land Title and NETCO were not willingly involved in any wrongdoing in the scam. The defendants who pleaded guilty Tuesday improperly used the companies in some of their transactions, said spokesman Fred Alverson.”

 Each of the conspiracy charges is punishable by up to 20 years imprisonment. All five are awaiting sentencing.

Agencies participating in the Greater Dayton Mortgage Fraud Task Force in addition to the FBI and IRS include the Ohio Department of Commerce Division of Financial Institutions, Ohio Attorney General Richard Cordray’s Office, the U.S. Postal Inspection Service, the U.S. Department of Housing and Urban Development Office of Inspector General, and the Perry Township Police Department.

 

 

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