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
JANUARY 4, 2008
FOR IMMEDIATE RELEASE
FORMER KC COUNCILWOMAN SENTENCED
FOR MORTGAGE FRAUD CONSPIRACY
KANSAS CITY, Mo. – John F. Wood, United States Attorney for the Western District of Missouri, announced that a former Kansas City Councilwoman was sentenced in federal court today for conspiracy and wire fraud for her role in a $400,000 mortgage fraud scheme.
Saundra A. McFadden-Weaver, 48, of Kansas City, Mo., was sentenced by U.S. Chief District Judge Fernando J. Gaitan, Jr., to two months of incarceration followed by four months of home detention as part of a three-year period of supervised release. The court will recommend that the Bureau of Prisons designate a local residential re-entry center for the custodial sentence, with authorized work release at both the residential re-entry center and during home confinement. The court also ordered McFadden-Weaver to pay $144,234 in restitution.
On Aug. 16, 2007, McFadden-Weaver was convicted of conspiracy to commit wire fraud as well as six individual counts of wire fraud. Co-defendants Ricky L. Hamilton, 53, of Grandview, Mo., and Emanuel M. Kind, 52, of Kansas City, each pleaded guilty to conspiracy to commit wire fraud and to one count of wire fraud. Hamilton was sentenced to one year and one day in federal prison without parole and Kind was sentenced to two years in federal prison without parole. Both Hamilton and Kind were ordered to pay $144,234 in restitution for which all three co-defendants are jointly and severally liable. The court also ordered Hamilton to pay an additional $6,000 in restitution related to other conduct.
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.
Hamilton, a mortgage broker at Trinity Mortgage in Grandview, 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.
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.
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 was prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the Federal Bureau of Investigation.
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