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FOR IMMEDIATE RELEASE |
Nov. 8, 2007
$14 MILLION LOAN FRAUD SCHEME ALLEGED IN FEDERAL GRAND JURY INDICTMENT
KANSAS CITY, KAN. – Six people were indicted Wednesday on federal charges of taking part in a conspiracy to fraudulently obtain $14 million worth of loans on homes in the Kansas City area.
Named in the indictment were Wildor Washington, Jr., 37, Leawood, Kan.; Maurice Ragland, 33, Lee’s Summit, Mo.; Victoria Bennett, 34, Leawood, Kan.; Kara E. Robinson-Franks, 37, Grandview, Mo.; Scott Alexander, 69, Merriam, Kan.; and Terrence Cole, 41, Kansas City, Kan.
According to the indictment:
– Washington owned Heritage Financial Investments, Legacy Enterprises, B&L Custom Development and Liberty Escrow. Through his companies, he prepared fraudulent loan applications submitted to lenders throughout the country including Hamilton Mortgage of Phoenix, Ariz; First Magnus of Overland Park, Kan.; Aegis Funding Corporation of Houston, Texas; National City Mortgage of Dayton, Ohio; Mortgage Solutions of Kansas City, Mo.; ABN Amro in Ann Arbor, Mich.; and Countrywide Home Loans in Overland Park, Kan.
– Maurice Ragland owned TERM Appraisers, The Real Estate Group and JTF Enterprises, which created fraudulent property appraisal reports used to secure mortgage loans.
– Bennett was a loan processor for Washington. Robinson-Franks held herself out as a real estate agent and vice president of operations for Heritage Financial Investments and Legacy Enterprises. Cole was chief financial Officer for Legacy Enterprises and Treasurer for Liberty Escrow. Alexander was a licensed mortgage broker who owned Atlantic Mortgage.
According to the indictment, the conspiracy existed from January 2002 through January 2004 for the purpose of enriching the conspirators through obtaining artificially oversized home loans from lenders. Conspirators targeted home buyers with low incomes and limited experience in real estate. They told buyers they could obtain home loans regardless of their credit rating and financial situation.
The conspirators submitted fraudulently inflated real estate appraisals and false financial information to lenders. At or near the time of the closing, the conspirators imposed excessive and unexpected loan origination fees and higher interest rates on borrowers.
The conspirators obtained the identity of licensed appraisers by searching the Internet and appropriating their identifying information and state license numbers. The conspirators also used fictitious identities and license numbers.
Counts in the indictment include:
– Conspiracy to commit mortgage fraud (Washington, Ragland, Bennett, Robinson-Franks, Alexander and Cole.)
– Wire fraud involving a property in the 200 block of Olive, Kansas City, Mo. (Washington, Alexander)
– Wire fraud involving a property in the 4400 block of Virginia, Kansas City, Mo. (Washington, Alexander)
– Wire fraud involving a property in the 500 block of Sharon Drive, Liberty, Mo. (Washington, Ragland, Alexander)
– Wire fraud involving a property in the 4600 block of West 146th Street, Leawood, Kan. (Robinson-Franks, Washington, Alexander, Bennett, Cole)
– Another wire fraud involving a property in the 4600 block of West 146th Street, Leawood, Kan. (Robinson-Franks, Alexander, Washington, Bennett)
– Wire fraud involving a property in the 12400 block of East 58th, Kansas City, Mo. (Washington, Alexander, Robinson-Franks, Cole)
– Another wire fraud involving a property in the 4600 block of West 146th Street (Robinson-Franks, Washington, Alexander, Bennett)
– Money laundering involving a property in the 500 block of Sharon Drive in Liberty, Mo. (Washington, Ragland, Alexander).
– Money laundering involving a property in the 12400 block of East 58th Street, Kansas City, Mo. (Washington, Alexander, Raglan)
– Money laundering involving a property in the 4600 block of 146th Street, Leawood, Kan. (Robinson-Franks, Bennett, Washington)
Upon conviction, the crimes carry the following penalties;
– Conspiracy: A maximum penalty of 5 years in federal prison and a fine up to $250,000.
– Wire fraud: A maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count.
– Money laundering: A maximum penalty of 20 years in federal prison and a fine up to $500,000.
The Internal Revenue Service– Criminal Investigation, the Johnson County Sheriff’s Department, the Overland Park Police Department, and the U.S. Secret Service’s Financial Crimes Task Force worked on the case. Assistant U.S. Attorney Marietta Parker is prosecuting.
OTHER INDICTMENTS
A grand jury meeting Wednesday in Kansas City, Kan., also returned the following indictments:
Thomas Crowl, 59, Merriam, Kan., is charged with five counts of bank robbery and one count of possessing counterfeit money.
According to the indictment:
– On July 20, 2006, Crowl robbed Great Western Bank, 10307 Metcalf Ave., Overland Park, Kan.
– On Sept. 15, 2006, Crowl robbed Metcalf Bank, 10300 Metcalf Ave., Overland Park, Kan.
– On Feb. 2, 2007, Crowl robbed Bank of the West, 9400 Antioch Road, Overland Park, Kan.
– On Oct. 16, 2007, Crowl robbed Bank of America, 9550 Metcalf, Overland Park, Kan.
– On Oct. 23, 2007, Crowl robbed Bank of the West, 9400 Antioch Road, Overland Park, Kan.
– On Oct. 23, 2007, Crowl possessed counterfeit money in denominations of 1, $5, $20, $50 and $100.
If convicted, he faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on each count. The Overland Park Police Department, the Federal Bureau of Investigation and the U.S. Secret Service worked on the case. Assistant U.S. Attorney Leon Patton is prosecuting.
Edgar Valdovinos, 28, and Gustavo Adolfo Ipina-Oliva, 27, are charged with one count of conspiracy to possess with intent to distribute approximately 6 kilograms (more than 13 pounds) of cocaine, and one count of possession with intent to distribute approximately 6 kilograms of cocaine. The crimes are alleged to have occurred Nov. 2, 2007, in Shawnee County, Kan.
If convicted, they face a penalty of not less than 10 years and not more than life in federal prison and a fine up to $4 million. The Drug Enforcement Administration and the Shawnee County Sheriff’s Office investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Jorge Marmolejo Rayas, 31, who is not a U.S. citizen, is charged with unlawfully re-entering the United States after being convicted of an aggravated felony and deported. He was found Oct. 19, 2007, in Kansas City, 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 Leon Patton is prosecuting.
Christopher M. Jones, of Ottawa, Kan., is charged with one count of unlawful possession of firearms after a conviction for domestic violence. The crime is alleged to have occurred Oct. 21, 2007, in Ottawa, 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.
As in any criminal case, a person is presumed innocent until and unless proven guilty. The indictments filed merely contain allegations of criminal conduct.
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