Mortgage Fraud Scheme Lands Ohio Man In Prison

admin —  December 14, 2009 — Leave a comment

Julian M. Hickman, 32, East Cleveland, Ohio and formerly of Centerville, was sentenced to 33 months in prison for operating an extensive mortgage fraud scheme affecting 210 residential properties, including 205 in Montgomery County between 2002 and 2006. Hickman was also sentenced to pay a $12,500 fine and serve three years of supervised release after his time in prison. The scheme affected 63 investors and led to foreclosure against owners of more than 90 percent of the properties.

As previously reported on Mortgage Fraud Blog, Hickman pleaded guilty in December 2008 to two counts of conspiracy and three counts of willful failure to file income tax returns. In a statement of facts filed with his plea, Hickman admitted that, between March 2002 and June 2008, he and others recruited unsuspecting individuals to buy residential properties, the majority of which were low income, dilapidated and otherwise depressed residential properties, at prices artificially inflated above legitimate fair-market values. Hickman admitted that he participated in 107 separate fraudulent real estate closings between March 2002 and June 2006. Hickman and his co-conspirators netted more than $3.8 million from the deals.

Hickman failed to file federal income tax returns in 2003, 2004 and 2005. In 2003, Hickman received gross income in excess of $680,000. In 2004, Hickman received gross income in excess of $830,000. In 2005, Hickman received gross income in excess of $200,000.

Carter M. Stewart, United States Attorney for the Southern District of Ohio, Keith L. Bennett, Special Agent in Charge, Federal Bureau of Investigation; Jose Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation, and other members of the Greater Dayton Mortgage Fraud Task Force announced the sentence imposed today by U.S. District Judge Michael A. Barrett.

Agencies participating in the Greater Dayton Mortgage Fraud Task Force in addition to the FBI and IRS include the Ohio Department of Commerce, 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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