Archives For construction loan

Michael P Kennedy was indicted by a Kentucky grand jury and charged with one count of bank fraud.

Kennedy was part owner and manager of Kennedy Homes LLC, Fort Mitchell, Kentucky, which contracted to construct new homes in the Northern Kentucky and Cincinnati Ohio areas.

The indictment alleges that, in January 2011, Kennedy Homes, entered into a construction management contract to build a new single family home on Grandin Riverview in Cincinnati, Ohio.  A family member agreed to obtain a construction loan for $2.8 million dollars to fund the costs of labor, materials and tools to be provided by Kennedy Homes. The family member obtained a construction loan from Fifth Third Bank.  Funds would be released upon submission of draw requests accompanied by a contractor’s affidavit entitled “Lien Waiver and Contractor’s Affidavit” which certified that Kennedy Homes and its subcontractors and suppliers had been paid in full, with the exception only of claims specifically listed on the form. Between January 2011 and August 2012, according to the indictment, Kennedy submitted false affidavits swearing that he had paid subcontractors, materialmen and laborers to date, except for those listed, which he swore he would pay with the proceeds of the draw request.  According to the indictment, he knew that the subcontractors and suppliers had not been paid.  Kennedy used some or all of the draw money to pay subcontractors, materialmen and laborers on other projects or to pay salaries to himself or other partners of Kennedy Homes.

Also, according to the indictment, in July 2011 Kennedy entered into a Building Construction Agreement on behalf of Kennedy Homes to build a home on Serenity Way in Edgewood, Kentucky for $975,000.  The homeowners obtained a $925,000 construction loan from Guardian Savings Bank to pay for the construction. Between July 2011 and July 2012, Kennedy executed false affidavits swearing that he had paid all materialmen and suppliers, knowing that they had not, in fact, been paid.  Kennedy used some or all of the draw money to pay subcontractors, materialmen and laborers on other unrelated projects or to pay salaries to himself or other partners of Kennedy Homes.

If convicted, Kennedy could be sentenced to a maximum term of 30 years in prison.

David B. Pick, Bowie, Maryland, was sentenced to 5 months imprisonment to be followed by 3 years supervised release.  He was ordered to pay restitution of $383,178.  He previously pled guilty to making false statements arising from a real estate closing.

As previously reported by Mortgage Fraud Blog, Pick was a loan originator respons Continue Reading…

David B. Pick, loan originator, 47, Bowie, Maryland, pleaded guilty to making false statements arising from a real estate closing.

Pick was a loan originator responsible for preparing loan applications, obtaining documentation to support the representations in loan applications, presenting loan applications to financial institutions for funding and working with financial institutions to close loans.

In 2005, Pick sought a $900,000 construction loan from a mortgage lender to purchase and construct a residence at 1206 Tilghmans Landing Way, Annapolis, Maryland.  The residence was to be constructed by Richland Homes, Inc., owned and operated by Timothy Ritchie, 44, Annapolis, Maryland .  Continue Reading…

William Glasgow, 72, Town and Country, Missouri, James Crews, 56, Wentzville, Missouri, and Michael Hilbert, 62, St. Charles, Missouri, surrendered on January 10, 2014, to authorities on two separate indictments alleging bank fraud against TARP recipient Excel Bank.

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