Feb 8, 2008 11:58 am US/Central
25 Indicted In Huge Mortgage Fraud Scheme
Various Suspects Accused Of Laundering Drug Money Through Real Estate, Using Unqualified 'Straw Buyers'
CHICAGO (CBS) ―
Federal authorities have charged 25 people in what is considered one of the largest mortgage fraud schemes in Chicago area history.
Following a four-year investigation, the FBI and U.S. Attorney's office alleged in three indictments that more than 150 homes were involved in fraudulent mortgage transactions worth $25 million.
One indictment claims that Raymie Henderson, 45; and Nowell Lando, 35, both of Chicago; along with Augustus Wright, 48, of Calumet City, laundered $700,000 worth of drug money by buying and renovating real estate under the name of a company called R&P Development, the FBI said. The properties were located on the city's South Side and in Harvey and Calumet City.
A second indictment accuses Larry Melvin, 27, of Evanston, and Maria Vega, 27, of Country Club Hills – both of whom worked for the Equity Express mortgage brokerage firm – with operating a fraud scheme. Also charged were Shaun Chaney, 40 of Park Forest, and Mary Dochee, 55, of South Holland.
All four were accused of recruiting "straw buyers" to buy properties they would not have been qualified to buy in their own, using fraudulent mortgage applications. The bogus applications had false employment, income and asset records, the FBI said.
The third indictment accuses 18 people of defrauding lending institutions with fraudulent mortgage applications. Among those charged are a real estate agent, a tax practitioner, loan officers and processors, a certified public accountant, a property manager, and several property developers and buyers, the FBI said.
Larry Skrobot, 54, is allegedly the ringleader of the scam, and is accused of using a land trust to buy distressed properties, then use "straw buyers" to buy the properties despite being unqualified to do so.
Skrobot is accused of sending his "straw buyers" to loan officers Varena McCloud, 44, of Chicago and Joseph Miller, 47, of the southern suburb of Phoenix, who allegedly filled out false employment and income information on mortgage forms so the "straw buyers" would appear qualified when they were not, the FBI said.
FBI Special Agent-in-Charge Robert Grant pointed out in announcing the charges that mortgage fraud is a problem.
"The joint investigative effort which led to the charges announced today is just one of the steps that the FBI, along with our state and federal law enforcement partners, are taking to combat this fraud which, as we have recently seen, can have a significant effect on the nation's economy," Grant sad in a news release.
All of those charged will appear in U.S. District Court next week, the FBI said.
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