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NEWS RELEASE

OFFICE OF THE UNITED STATES ATTORNEY

WESTERN DISTRICT OF MISSOURI


JOHN F. WOOD


Contact Don Ledford, Public Affairs ● (816) 426-4220 ● 400 East Ninth Street, Room 5510 ● Kansas City, MO 64106

www.usdoj.gov/usao/mow/index.html


DECEMBER 13, 2007

FOR IMMEDIATE RELEASE


MORTGAGE BROKER SENTENCED FOR

MORTGAGE FRAUD CONSPIRACY


            KANSAS CITY, Mo. – John F. Wood, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for conspiracy and wire fraud related to his role in a $400,000 mortgage fraud scheme.


             Ricky L. Hamilton, 53, of Grandview, Mo., was sentenced by U.S. Chief District Judge Fernando J. Gaitan, Jr., this morning to one year and one day in federal prison without parole. The court also ordered Hamilton to pay $144,234 in restitution related to the mortgage fraud and an additional $6,000 in restitution related to other conduct. Hamilton was a mortgage broker at Trinity Mortgage in Grandview.


             On Aug. 9, 2007, Hamilton and co-defendant Emanuel M. Kind, 52, of Kansas City, pleaded guilty to conspiracy to commit wire fraud and to one count of wire fraud. Kind was sentenced on Wednesday, Dec. 12, 2007, to two years in federal prison without parole and ordered to pay $144,234 in restitution for which he and Hamilton are jointly and severally liable. Co-defendant Saundra A. McFadden-Weaver, 48, of Kansas City, was convicted at trial on Aug. 16, 2007, for her role in the conspiracy as well as six individual counts of wire fraud. A sentencing hearing for McFadden-Weaver has been continued to Dec. 28, 2007.


            All three co-defendants participated in a conspiracy to defraud a mortgage lender from August or early September 2005 through August 2006. McFadden-Weaver, Kind and Hamilton agreed that McFadden-Weaver would obtain $400,000 in loans to purchase a home at 301 S.E. Hackamore, Lee’s Summit, Mo. McFadden-Weaver signed documents stating that she would repay the loans and that she would live in the residence; in reality, however, McFadden-Weaver never intended to either make any mortgage payments or to live in the house. Instead, the property was being purchased for the benefit of Kind, who was supposed to live in the house and pay the mortgage and other expenses.


            Kind had attempted to obtain financing to purchase the Lee’s Summit property but was rejected for a loan. He then approached McFadden-Weaver, suggesting that she take out the loan in her name. In exchange, they would seek to obtain loans for McFadden-Weaver in excess of the listed sale price of the property. The excess funds would be used to rehabilitate another property at 2518 Benton Blvd., Kansas City, which McFadden-Weaver hoped to purchase from her church. McFadden-Weaver had been unsuccessful in her efforts to obtain a loan to make improvements on the Benton Boulevard property. Kind, a construction contractor, agreed to make the improvements to the Benton Boulevard property in exchange for McFadden-Weaver taking out the loans for the Lee’s Summit property.


            McFadden-Weaver, Kind and Hamilton conspired to prepare false and misleading loan applications and supporting documents, which were submitted to MILA, a mortgage lending company in Mountlake Terrace, Washington. Among the misrepresentations, the documents also overstated McFadden-Weaver’s income and understated her liabilities, misrepresented that she intended to live in the residence, and misrepresented that she had inspected the property.


            Hamilton agreed to broker the loan for the purchase of the Lee’s Summit residence, knowing that McFadden-Weaver did not intend to live in the residence and would have no responsibility for the property and that funds from the loans would be used to rehab the Benton Boulevard property.


            MILA approved two loans totaling $400,000 based upon that false information. Those loans were later sold to other lenders, and the property was foreclosed in August 2006.


            This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the Federal Bureau of Investigation.


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This news release, as well as additional information about the office of the United States Attorney for the Western District of Missouri, is available on-line at

www.usdoj.gov/usao/mow/index.html