Angela R. Clark, 41, Lee’s Summit, Missouri, a former real estate agent pleaded guilty in federal court to her role in a $12.6 million mortgage fraud conspiracy that involved 25 upscale residential properties in Lee’s Summit, Missouri, and Raymore, Missouri.
As previously reported on Mortgage Fraud Blog, Clark was a real estate agent and co-owner of Centsable Business Services who sold new homes for builder Jerry R. Emerick, 40, Raymore, Missouri, in the Raintree and Belmont Farms subdivisions in Lee’s Summit, Missouri and the Eagle Glen subdivision in Raymore, Missouri. Clark is among 16 defendants who have pleaded guilty to the scheme to buy and sell new homes – all of which were built by Emerick – from February 2005 through May 2007.
Clark admitted that she structured the sale of the homes in such a way that buyers purchased the homes at inflated prices, obtained mortgage loans for more than the actual sale price by providing false information to mortgage lenders, then kept the extra proceeds. Clark knew that loan applications and supporting documentation that contained material false information would be submitted to mortgage lenders, and Clark submitted false documentation and made fraudulent material representations to title companies. Clark also instructed buyers to create shell companies for the purpose of receiving those kickbacks from Emerick, with kickbacks of up to $125,000 on each house.
Emerick owned and operated Ty Construction and Residential Contracting, LLC, which was engaged in the business of residential construction, primarily in Lee’s Summit and Raymore, Missouri. He pleaded guilty on April 9, 2009, to conspiracy to commit mortgage fraud and wire fraud and to transfer funds obtained by fraud across state lines.
In total during the course of the conspiracy, mortgage lenders approved loans for 25 homes totaling more than $12.6 million. From that total, buyers received approximately $2.3 million without the lenders’ knowledge. Clark received approximately $381,495.
Under the terms of today’s plea agreement, the government and Clark agree that the sentence imposed will not exceed nine years in federal prison without parole. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
Clark pleaded guilty before U.S. Chief District Judge Fernando J. Gaitan this afternoon to the charges contained in an Oct. 29, 2008, federal indictment.
This case is being prosecuted by Assistant U.S. Attorneys Linda Parker Marshall and Kathleen D. Mahoney. It was investigated by the Federal Bureau of Investigation and IRS-Criminal Investigation.