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FOR IMMEDIATE RELEASE |
June 11 , 2009
TEN INDICTED IN $3 MILLION MORTGAGE FRAUD CASE
TOPEKA, KAN. – Ten people have been indicted in a $3 million mortgage fraud case, U.S. Attorney Lanny Welch said today.
Charged are Eric M. Rabicoff, 26, Hutchinson, Kan.; Jason L. Rabicoff, 33, Overland Park, Kan.; Lucas R. Collier, 27, Basehor, Kan.; Anthony E. Carollo, 31, Raytown, Mo., Deborah Saulmon, 50, Olathe, Kan.; Bora Ly, 27, Raytown, Mo.; Anthony “Gabe” Painton, Jr., 29, Kansas City, Mo.; Kong Bun Ly, 29, Kansas City, Mo.; Rebecca Gelwix, 24, West Des Moines, Iowa; and Richard Ngek, 25, Lee’s Summit, Mo., are charged with mortgage fraud.
According to the indictment, in 2006 Eric Rabicoff devised a scheme to defraud lenders by recruiting straw buyers to purchase homes that were for sale by owners. It was part of the scheme to submit false information to lenders so that borrowers received loans for which they were not qualified. The conspirators submitted false information to lenders about borrowers’ employment history, income and rent history. In this way, the conspirators obtained more than $3 million in loans for borrowers who did not in fact qualify for the loans.
Conspirators caused loans to be made on properties in Olathe, Kan., Kansas City, Mo., and Lee’s Summit, Mo.
Rabaicoff recruited straw buyers to take title for a short time to houses and to obtain loans on the houses. He convinced the straw buyers he would purchase the homes and remove their names from the loan obligations. He represented that he already had renters for the properties whose rental payments would cover the mortgage payments until Rabicoff purchased the properties from the straw buyers. Rabicoff recruited Lucas R. Collier as a straw buyer. Collier recruited Anthony “Gabe” Painton, Jr., and Boral Ly. They recruited Rebecca Gelwix. Kong Bun Ly and Richard Ngek. None of the straw buyers were in fact qualified to receive home loans.
Jason Rabicoff, who is Eric Rabicoff’s brother, was a loan officer for Apex Financial, a mortgage company in Olathe, Kan., that brokered loans through Clarion Mortgage of Overland Park, Kan. At his brother’s direction, Jason Rabicoff assembled loan files on the straw buyers, including false reports on rent history, employment and income.
Anthony E. Carollo, who is the cousin of Lucas Collier, was the manager of Gourmet Grocers, a small, family-owned, business that all the straw buyers listed as their employer. Carollo was paid to provide false Verification of Employment forms to lenders. Deborah Saulmon, who owned a property management company called Essential Properties, provided false Verfication of Rent forms to lenders.
Eric Rabicoff submitted false invoices to title companies seeking payment for making improvements to properties when in fact the improvements had never been made. The lenders paid the money to MSM Enterprises, a company set up by Rabicoff. At Eric Rabicoff’s direction, Collier, Ly and Painton set up shell companies including Cappo Investment Agency, LL., Global Investing LLC and AJs Investment Group to receive proceeds from the conspiracy.
The government is seeking the forfeiture of more than $3 million on proceeds from the crime.
Upon conviction, the alleged crimes carry the following penalties:
Conspiracy: A maximum penalty of 30 years in federal prison.
Bank Fraud: A maximum penalty of 30 years in federal prison on each count.
Wire fraud: A maximum penalty of 5 years and a fine up to $1 million on each count.
Unlawful monetary transactions: A maximum penalty of 10 years and a fine up to $250,000 on each count.
The Internal Revenue Service investigated. Assistant U.S. Attorney Christine Kenney and Assistant U.S. Attorney Richard Hathaway are prosecuting.
OTHER INDICTMENTS
A federal grand jury meeting in Topeka, Kan., also returned the following indictments:
Seven foreign citizens are charged with conspiring to steal federal income tax refund checks and cash them at businesses in Wichita.
Charged are Franklin N. Chavez-Alvarez, 38, Honduras; Jose Francisco Mariadiaga-Guadiola, 40, Honduras; Nery A. Sandoval-Montes, 28, Honduras; Manuel D. Aguilar-Montes, 24, Honduras; Rogaciano Ramirez-Diaz, 33, Mexico; Magdalit Ramirez, 32, Mexico; and Alma Gabriela Lozano-Leos, 20, Mexico.
According to the indictment, the defendants conspired to steal federal income tax refund checks and cash them. They manufactured counterfeit Texas drivers licenses and drove from Texas to Kansas to cash the stolen checks. In Kansas, they forged endorsements on the stolen checks and used the counterfeit drivers licenses with their photos to cash the checks.
According to an investigator’s affidavit, on May 15, 2009, Wichita Police contacted Immigration and Customs Enforcement after foreign nationals attempted to cash stolen U.S. Treasury checks at Ace Check Express on East 21st Street in Wichita. Local and federal law enforcement officers worked together on the investigation that followed.
All seven defendants are charged with conspiracy to steal tax refund checks and cash them using counterfeit identification documents. If convicted on that charge, they face a maximum penalty of 5 years in federal prison without parole and a fine up to $250,000. Other charges and penalties in the indictment include:
– Unlawful re-entry after deportation: A maximum penalty of 2 years in federal prison without parole and a fine up to $250,000 on each count.
– Forging a signature on U.S. Treasury checks: A maximum penalty of 10 years without parole and a fine up to $250,000 on each count.
– Aggravated identity theft: A mandatory 2 years consecutive to other sentences and a fine up to $250,0000 on each count.
– Possession and use of false documents as evidence of stay or employment in the United States: A maximum penalty of 10 years and a fine up to $250,000.
Immigration and Customs Enforcement, the U.S. Secret Service, the Wichita Police Department and the Hutchinson Police Department investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Ryan A. Peterson, Ipswich, S.D., is charged with attempting to murder Joshua E. Webber. According to the indictment, on May 22, 2009, Peterson drove from Ipswich, S.D., to Fort Riley. He was armed with a hunting knife and a painter’s tool for breaking into Webber’s house on Washington Ave., at Ft. Riley. He rang the doorbell, confronted Webber and then ran away. Then he hid nearby and tried to enter the home through the garage and windows while Webber was inside. When confronted by law enforcement officers, he fled before being arrested.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. The Federal Bureau of Investigation worked on the case. Assistant U.S. Attorney Randy Hendershot is prosecuting
Gregory D. Crosby, 44, Kansas City, Kan., is charged with one count of bank robbery and one count of making a false report to law enforcement officers.
According to the indictment, Crosby robbed Capitol Federal Savings at 2901 S. Kansas in Topeka on May 21, 2009. After the robbery, Crosby made false statements to law enforcement officers that he had placed bombs in the U.S. Courthouse in Topeka and in an automobile in the Wal-Mart parking lot at 1301 W. 38th, Topeka, Kan.
If convicted, he faces a maximum penalty of 20 years and a fine up to $250,000 on the bank robbery charge, and a maximum penalty of 5 years and a fine up to $250,000 of making a false report to law enforcement officers. The Federal Bureau of Investigation and the Topeka Police Department worked on the case. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Ollie Brown, Jr., is charged with one count of car jacking, one count of using a firearm in furtherance of a crime of violence, and two counts of unlawful possession of a firearm after a felony conviction. The crimes are alleged to have occurred in December 2007 and September 2008 in Riley County, Kan.
If convicted, he faces a maximum penalty of 15 years and a fine up to $250,000 on the car jacking charge, not less than 7 years and not more than life and a fine up to $250,000 on the charge of using a firearm in a crime of violence, and a maximum penalty of 10 years and a fine up to $250,000 on the charge of unlawful possession of a firearm by a felon. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Nyron Bowen, 18, Wichita, Kan., is charged with distributing crack cocaine. The crime is alleged to have occurred from Feb. 1 through April 28, 2008, in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 10 and not more than life. The Drug Enforcement Administration investigated. The U.S. Attorney’s office is prosecuting.
Albert J. Thomas, Sr., 52, Wichita, Kan., is charged with distributing crack cocaine. The crime is alleged to have occurred June 3, 2009, in Sedgwick County, Kan.
If convicted, he faces a penalty of not less than 5 years and not more than 40 years and a fine up to $2 million. The Wichita Police Department investigated. Assistant U.S. Attorney Blair Watson is prosecuting.
Lorenzo L. Lloyd, 29, Kansas City, Kan., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred May 22, 2009, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Robert A. Dyer, 36, is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred May 11, 2009, in Kansas City, Kan.
If convicted, he faces a maximum penalty of 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Robert Howard Blackwell, 43, Barstow, Calif., is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred April 24, 2009, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney Randy Hendershot is prosecuting.
Antonio C. Clark, 26, is charged with one count of unlawful possession of a firearm after a felony conviction. The crime is alleged to have occurred April 1, 2009, in Shawnee County, Kan.
If convicted, he faces a maximum penalty of 10 years and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Special Assistant U.S. Attorney Duston Slinkard is prosecuting.
Eric Polvon-Caro, 27, a citizen of Mexico, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found Sept. 17, 2008, in Liberal, Kan.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments filed merely contain allegations of criminal conduct.
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