Tuesday, December 20, 2005

Last Defendant Sentenced in Lee’s Summit, Missouri Mortgage Fraud

Carl Long, 56, Oak Grove, Missouri was sentenced to three years in federal prison with parole and ordered to pay $79,500 in restitution.  On April 21, 2005, Carl Long pleaded guilty to two counts of wire fraud and one count of money laundering in connection with part of a mortgage fraud scheme among three co-defendants that involved a total of 120 loans valued at nearly $18 million.

Carl Long was engaged in the mortgage lending business with his son and co-defendant Anthony Edward Long, 35, Blue Springs, Missouri, through Community HomeBanc and First Equity Banc, two Independence, Missouri companies that are no longer in business. Co-defendant Mitchell David Medlin, 43, Lee�s Summit, Missouri, was engaged in residential and light commercial construction, doing business as M&R Construction, LLC, in Lee�s Summit.  Anthony Long and Medlin also pleaded guilty and have already been sentenced.

According to U.S. Attorney Todd Graves, the three co-defendants induced individuals to obtain loans in order to purchase duplexes, primarily in Lee�s Summit and Independence at Westwind, Westvale and Viking Place. They caused lending institutions to approve those loans, all based on false and fraudulent information. Long admitted that he submitted or caused to be submitted 26 loan applications for properties at Westwind and Westvale, totaling more than $3.6 million.

From December 4, 2000, to August 20, 2003, the scheme used investment properties as a means to generate excess loan funds by obtaining inflated appraisals. Those inflated appraisals, Graves explained, were based on false rental fees, phony lease agreements, fabricated comparable listings and sales, and false statements in loan applications.

Anthony Long was sentenced on Oct. 5, 2005, to three years and three months in federal prison without parole. The court also ordered Anthony Long to pay $1,388,126 in restitution. Medlin was also sentenced on Oct. 5, 2005, to five years of probation, including six months in a halfway house and six months of home detention. The court also ordered Medlin to pay $1,388,126 in restitution.

On April 21 and 22, 2005, respectively, Medlin and Anthony Long pleaded guilty to wire fraud and money laundering related to the mortgage fraud scheme. On June 23, 2005, Anthony Long also pleaded guilty in a separate and unrelated case to illegally possessing a firearm. Anthony Long admitted that he was in possession of a High Standard .22-caliber revolver on Oct. 19, 2004. Under federal law, Graves explained, it is illegal for anyone who is subject to a court order of protection to be in possession of any firearm or ammunition. On April 28, 2004, Anthony Long�s wife was granted a full order of protection by the Jackson County Circuit Court that restrained him from harassing, stalking and threatening her.

mortgage fraud

1. I need help investigating a lender for fraud.  The owner is a convicted felon (identity theft) and her license was revolked upon notification of the conviction.  She and common law spouse, also no license, have opened a mortgage business for people with bad credit.  They have gone from bankruptcy, multiple vehicle repos, evictions and felony conviction in the past 2-3 years to just buying a new suburban, $450K home and opening a brand new business in new office complex in Frisco, TX.  She is still on her 5 years probation. How do I find out more about this company called “Silver Key” and if they are doing business under alias or someone elses identity since that is her expertise.  I know because I was the victim and can’t do anything legally to get my feet back on the ground and can’t imagine it being so easy to do illegally.

   Posted by  on  12/21  at  08:04 AM

2. Rachel - You and your site are the GREATEST!  Have a wonderful Holiday.  Looking forward to working more closely with you in the coming year.

   C

   Posted by  on  12/22  at  06:31 AM

3. Rachel, this is the reason that i do what I now do, the Longs and Brent Barber were in this industry when i was Indicted and justice does rule. Sometimes it takes a while though. If only we would train employees on the front lines and front end and not expect to take losses on the back end, then and only then will we get a handle on the fraud problem that is running rampet within the industry.

   Posted by kevin Barnes  on  01/01  at  04:22 PM

4. Just wanted to say hello to everyone and let them know Im back.

   Posted by  on  08/12  at  05:48 AM

5. Sure, Tony.  You just got back from JAIL.

   Posted by  on  11/21  at  10:36 AM