Wednesday, March 19, 2008

Kentucky Man Sentenced For Identity Theft

Willie Collins, 76, Chicago, Illinois, was sentenced to 2 years and 1 day imprisonment in United States District Court, Louisville, Kentucky, for aggravated identity theft and conspiracy to commit bank and wire fraud; all in connection with the fraudulent obtaining of mortgage loans on two Kentucky residences, one in Indian Hills and the other in Cherokee Triangle. Thomas B. Russell, Judge, United States District Court, also sentenced Collins to 3 years supervised release following incarceration.  There is no parole in the federal judicial system.

As previously reported by Mortgage Fraud Blog, Collins pled guilty on May 15, 2007, to charges related to his involvement in the stealing of the identity of the owners of homes in Indian Hills and the Cherokee Triangle to facilitate three fraudulent loan closings on the properties.  He, along with James C. Hardison, Freddie Johnson, and Marilyn Rainey, 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 multiple closings on these properties.  At the closing on the Indian Hills home, they attempted to obtain a loan in the amount of approximately $403,000.  At the first closing on a home in the Cherokee Triangle, they were able to obtain approximately $290,000 in loan proceeds.  They obtained a second loan from a different lender on the same Highlands home, but were arrested by the Louisville Metropolitan Police Department (LMPD) before they could withdraw these funds.  Hardison’s role in the scheme was to arrange the loans and pose as the buyer of the property.  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 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 for the Indian Hills property on November 21, 2006, and $294,567.22 from the second closing on the Cherokee Triangle property on November 27, 2006.  The $303,704.57 was wired to a LaSalle Bank account in Chicago that was opened under a fake name.  The monies have not been recovered.  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 Johnson and Collins.  Shortly after their arrest, the LMPD and the United States Secret Service were able to identify and then arrest Johnson and Hardison.

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, and was sentenced to 6 years and 9 months imprisonment, plus 5 years supervised release following incarceration.  He was also ordered to pay $202,704.57 in restitution to Homecoming Financial.

Johnson, who pled guilty on May 15, 2007, and Rainey, who pled guilty on July 12, 2007, both also from Chicago, Illinois, were sentenced on November 2, 2007.  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.  Johnson was also ordered to pay restitution to Homecoming Financial in the amount of $303,704.57.

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