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FOR IMMEDIATE RELEASE |
June 9 , 2009
MISSOURI MAN PLEADS GUILTY TO MORTGAGE FRAUD IN KANSAS
KANSAS CITY, KAN. – Ryan Keith Miller, 35, Lee’s Summit, Mo.,
has pleaded guilty to mortgage fraud charges, U.S. Attorney Lanny Welch
said today.
Miller pleaded guilty in U.S. District Court in Kansas City, Kan., to
one count of conspiracy to commit mortgage fraud, one count of wire fraud,
one count of money laundering, and one count of aggravated identity theft. In
his plea, Miller admitted he conspired with co-defendants Wildor
Washington, Jr., David Kostelec, Amanda Childs, Gregory Stevenson
and others to fraudulently obtain mortgage loans. The conspirators submitted
fraudulent loan applications and property appraisals to lenders to obtain
money and then transferred the proceeds to bank accounts they controlled for
their own use. Among the business entities used by the conspirators was
Approved Mortgage, The Mortgage Connection, Atlantic Mortgage, TERM
Appraisers, Apex Appraisals, Midwest Appraisals, Miller Appraisals,
Pinpoint Appraisals, Summit Appraisals, Alexandra Enterprises, and Ryan
Miller Appraisals, LLC.
The conspirators obtained loans for purchasing and refinancing
properties by submitting false and fraudulent loan applications that contained
false statements of borrowers’ incomes and employment, false lien
information, false statements of occupancy, false sales contracts and false
notarization of loan documents. They submitted appraisal reports containing
inflated property values and forged signatures of licensed appraisers.
In his plea, Miller admitted that on Jan. 11, 2002, he and other
conspirators formed TERM Investment Group LLC, also known as Term
Appraisers. Appraisals prepared by TERM contained false and fraudulent
information that was submitted to lenders. On Aug. 15, 2002, Miller aided
co-defendant Wildor Washington, Jr., and others in preparing a false and
fraudulent appraisal on a property in the 12400 block of South Acuff Court in
Olathe, Kan. On Feb. 4 and 5, 2003, Miller aided Washington and others in
submitting a false payoff statement and a false appraisal on a property in the
11100 block of East 78th Street in Kansas City. Mo. On Feb. 17, 2005, Miller
prepared a false appraisal on a property in the 3800 block of Baltimore in
Kansas City, Mo. On Feb. 17, 2005, he prepared a false appraisal on a
property in the 2300 block of Benton Boulevard in Kansas City, Mo.
Miller also participated in fraudulent activities causing wire transfers to
be made of proceeds on a loan for a house in the 1400 block of North 22nd in
Kansas City, Kan. As part of the transaction he unlawfully made use of the
identity of a licensed appraiser.
Sentencing is set for Sept. 14, 2009. He faces a maximum penalty of 5
years and a fine up to $250,000 on the conspiracy charge, 20 years and a fine
up to $250,000 on the wire fraud charge, 10 years and a fine up to $250,000
on the money laundering charge, and a mandatory 2 years consecutive to
other sentences and a fine up to $250,000 on the identity theft charge.
Welch commended the U.S. Postal Service, the Internal Revenue
Service, the Johnson County Sheriff’s Department, U.S. Department of
Housing and Urban Development - Office of Inspector General, the U.S.
Secret Service, and Assistant U.S. Attorney Marietta Parker for their work on
the case.
In a related case, Alexandra Davidson, 57, was sentenced to 4 months
incarceration and restitution of $369,371. In February 2009, Davidson
pleaded guilty to one count of conspiracy to commit wire fraud and money
laundering, and one one count of wire fraud. In her plea, she admitted
conspiring with co-defendants David Kostelec, Joseph Balano and Craig
Long to fraudulently obtain mortgage loans. She admitted that she and others
were involved in fraudulent acts related to loans on properties in the 2000
block of Cyprus in Kansas City, Mo., the 3900 block of Harrison in Kansas
City, Mo., the 14100 block of Windsor Street in Leawood, Kan., and the
1400 block of N. 22nd in Kansas City, Kan.
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