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FOR IMMEDIATE RELEASE |
Sept. 22 , 2009
TWO MORE PLEAD GUILTY IN $3 MILLION MORTGAGE FRAUD
TOPEKA, KAN. – Bora Ly, 27, Raytown, Mo., and Deborah Saulmon, 50, Olathe, Kan., have pleaded guilty to mortgage fraud charges, U.S. Attorney Lanny Welch said today.
Each of them pleaded guilty to one count of conspiracy to commit bank fraud, money laundering and wire fraud. In their pleas, Ly and Saulmon admitted that beginning in 2006 they conspired with Eric M. Rabicoff and other defendants to defraud federally insured mortgage lenders.
The conspirators arranged for straw buyers to purchase homes that were for sale by owners. They obtained financing for the deals by submitting false loan applications to lenders. False information including employment history, income and rent history was submitted in order for the straw buyers to obtain loans they would not otherwise qualify to receive. The scheme also called for contract prices to be increased and for conspirators to receive money by submitting false invoices to title companies at closing.
In her plea, Saulmon admitted her role in the scheme was to use her property management company, Essential Properties, to provide false Verifications of Rent to lenders. The fraudulent information created false rent histories for straw buyers.
In his plea, Ly admitted he acted as a straw buyer for two homes. He also set up a shell company called Global Investing LLC and opened an account at Bank of Blue Valley to launder funds from the conspiracy.
Ly and Saulmon are set for sentencing Dec. 21, 2009.
Co-defendants include:
Anthony E. Carollo and Rebecca Gelwix,, who are set for sentencing Nov. 16, 2009.
Anthony Painton, Jr., who is set for sentencing Oct. 19, 2009.
Eric M. Rabicoff, Jason L. Rabicoff, Lucas R. Collier, Kong Bun Ly, and Richard Ngek, who are awaiting trial. In all cases, defendants are presumed innocent until and unless proven guilty. The indictments filed merely contain allegations of criminal conduct.
Welch commended the Internal Revenue Service, Assistant U.S. Attorney Christine Kenney and Assistant U.S. Attorney Richard Hathaway for their work on the case.
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