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Authorities Arrest 4 in Alabama Mortgage Fraud Scam
According to the Associated Press and Mobile, Alabama’s Press-Register newspaper, the FBI has arrested four people and accused them of swindling Regions Bank out of $1 million in a mortgage-related con.
FBI Special Agent Craig Dahle tells the Press-Register that federal officers and investigators from the Alabama attorney general’s office arrested Darlene Hill, Joycelyn Easter, Kathy Frye, and Antonio Harrison without incident on Tuesday at each of their respective homes. All four have already pleaded innocent before a U.S. Magistrate Judge in Mobile.
The indictment that lead to the arrests charges each of the suspects with four counts of wire fraud and four counts of loan fraud. The Press-Register also reports prosecutors are seeking to force the forfeiture of property purchased with the loans, along with money located in a number of different bank accounts.
According to the AP, all four are accused of using the names of “unwitting participants” in order to obtain mortgages from Regions Bank. The foursome submitted fraudulent information in order to secure the loans and then used part of the money to purchase at least three properties in Mobile. To obtain the mortgages, Hill, Easter, Frye, and Harrison submitted a loan packet for straw buyers that misrepresented borrower’s income and assets, according to the indictment.
The value of the loans made by Regions, according to the indictment, totals $996,000, but the FBI says the actual amount could be much higher.
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[...] Two of the four people arrested back in June in connection with a $1,000,000 mortgage fraud scam in Alabama have pled guilty. Antonio Harrison of Mobile, Alabama, pleaded guilty to one count of wire fraud and one count of loan fraud, while Kathy Frye of Eight Mile, AL, pleaded guilty to failure to inform the authorities of the occurrence of a serious crime. [...]
Pingback by Real Estate Fraud | Mortgage Fraud | Flipping Schemes » Update: Two Plead Guilty in Alabama Mortgage Fraud Scam — August 24, 2006 @ 12:45 am