Man Admits Role in $3.6M Mortgage Fraud Scam

admin —  February 4, 2010 — Leave a comment

Quentin Henley, 37, Kansas City, Missiouri, pleaded guilty for his role in a mortgage fraud conspiracy that involved loans on 34 properties in the inner city and midtown areas of Kansas City, Missouri, totaling more than $3.6 million.

As previously reported on Mortgage Fraud Blog, Henley did business as Quality Remodeling, as All and One Construction and as Corporate Remodeling Associates. Henley admitted that he participated in a mortgage fraud conspiracy from July 2003 to January 2009, in which he acquired residential properties at reduced rates for the stated purpose of rehabbing the properties, then renting or selling them. In reality, Henley did little or no work to rehab some of the properties.

Henley and his co-conspirators submitted materially false, fraudulent and misleading loan applications and supporting documentation to mortgage lenders, all to induce the lenders to approve the applications and lend funds. Henley admitted that he caused mortgage lenders to make loans regarding at least 34 properties in the amount of at least $3,600,482.

In addition to the mortgage fraud conspiracy, Henley also pleaded guilty to money laundering. Henley admitted that he engaged in a financial transaction that involved funds obtained by fraud.

Under federal statutes, Henley is subject to a sentence of up to 15 years in federal prison without parole, plus a fine up to $500,000 and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by IRS-Criminal Investigation and the Federal Bureau of Investigation.

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