Monday, November 05, 2007

2 Sentenced for Identity Theft and Mail Fraud

Freddie Johnson, 39, and Marilyn Rainey, 60, both of Chicago, Illinois, were sentenced in United States District Court, Louisville, Kentucky, for aggravated identity theft and mail fraud in connection with the fraudulent obtaining of mortgage loans on a Cherokee Triangle, Louisville, Kentucky residence.  Johnson was sentenced to 6 years and 3 months imprisonment, plus 5 years supervised release, and Rainey was sentenced to 2 years and 1 day imprisonment, plus 5 years supervised release following incarceration.  There is no parole in the federal judicial system.  In addition, Johnson was ordered to pay restitution to Homecoming Financial in the amount of $303,704.57.

Johnson pled guilty on May 15, 2007, and Rainey on July 12, 2007, to charges related to their involvement in the stealing of the identity of the owner of 2411 Longest Avenue, Louisville, Kentucky to facilitate two fraudulent loan closings on the property.  They, along with James C. Hardison and Willie Collins, were able to effectuate their scheme, by also stealing the identity of a Southern Indiana man so that Hardison could pose as a buyer at the closing, while Rainey posed as the actual owner of the property.  Using these stolen identities, Hardison, Rainey, and Collins participated in two separate closings on this same property.  At the first closing they were able to obtain approximately $290,000 in loan proceeds.  They attempted to obtain a second closing and loan on the property in the same amount, but were arrested by the Louisville Metropolitan Police Department before they could withdraw these funds.  Johnson’s role in the scheme was to recruit Rainey to pose as the buyer of the property and to recruit Collins to open a bank account in Louisville, Kentucky, so that they could cash the check that they obtained from the closing. 

The defendants were able to obtain $303,704.57 from the first closing on November 21, 2006, and $294,567.22 from the second closing n November 27, 2006.  The bank, however, put a hold on the check from the second closing.  When the defendants’ attempted to withdraw the proceeds from this second check, the Louisville Metropolitan Police Department was able to arrest Rainey and Collins.  Shortly after their arrest, the LMPD and the United States Secret Service were able to identify and then arrest Johnson and Hardison as the other participants in the scheme.

In addition to his involvement in the two loans for 2411 Longest Avenue, Hardison is also charged in an additional count for his role in attempting to fraudulently obtained a $403,538.10 loan from Countrywide Mortgage.  Hardison is charged with stealing the identity of an individual in order to obtained this loan from Countrywide Home Loans.

Willie Collins, Chicago, Illinois, plead guilty to the charges on May 15, 2007, and is scheduled to be sentenced on November 27, 2007.

James Hardison, Louisville, Kentucky, was found guilty on October 12, 2007, by a jury in U.S. District Court of aggravated identity theft and conspiracy to commit bank and wire fraud.  He is scheduled to be sentenced on January 15, 2008, at 12:00 p.m., in Louisville, Kentucky.

The case was prosecuted by Assistant United States Attorney Bryan Calhoun, and it was investigated by the United States Secret Service and the Louisville Metropolitan Police Department.

mortgage fraud

1. The problem is that the lenders, such as Countrywide, are a “countrywide” company devoted to helping create and maintain FRAUD… this problem stems from the TOP to the BOTTOM. I cannot pass judgement on them but God will.

   Posted by  on  12/27  at  01:06 PM