former bank vice president, former police officer among those indicted for mortgage fraud
KANSAS CITY, Mo. – Beth Phillips, United States Attorney for the Western District of Missouri, announced today that a former bank vice president and a former police officer are among five men indicted by a federal grand jury for mortgage fraud.
Craig A. Chambers, 47, and William M. Vaughan, 57, both of Shawnee, Kan., Patrick Friedl, 41, of Olathe, Kan., Tom K. Crowley, 44, of Lee’s Summit, Mo., and Jon Nevins, 40, of Leawood, Kan., were charged in a 13-count superseding indictment returned under seal on June 15, 2011, by a federal grand jury in Kansas City, Mo. That indictment, which replaces a Feb. 9, 2011, federal indictment and adds Nevins as a co-defendant, was unsealed and made public upon Nevins’ arrest and initial court appearance.
The indictment alleges that Chambers, Vaughan, Friedl and Crowley participated in a conspiracy to transport stolen securities and to engage in money laundering from Feb. 2, 2006, to June 18, 2008.
Vaughan was the vice president of Northland National Bank in Gladstone, Mo., at the time of the offense. Chambers, a former Gladstone police officer, worked as a mortgage broker during the criminal conspiracy.
According to the indictment, the conspiracy was part of a $485,000 mortgage fraud scheme in which they submitted false documentation in support of a mortgage loan application and a false invoice for renovation work for a residence in Shawnee that had just been through foreclosure. Conspirators allegedly took $97,189 by fraud from the mortgage loan proceeds.
In addition to the conspiracy, Chambers is charged with one count of transporting stolen securities across state lines and one count of money laundering. Chambers and Vaughan are also charged together in three counts of money laundering. Chambers and Crowley are also charged together in one count of money laundering.
The superseding indictment also alleges that Chambers and Nevins participated in a conspiracy to commit wire fraud and money laundering from June 12 to July 14, 2006. According to the indictment, the conspiracy was part of a $657,768 mortgage fraud scheme in which they submitted false documentation in support of a mortgage loan application for a residence in Overland Park.
Nevins allegedly posed as a straw buyer – a purported legitimate buyer pretending to buy the residence at a fair market price – knowing that the sale price was far in excess of the fair market price and the difference in sale proceeds would be diverted to the conspirators. Nevin allegedly received $75,000 from the fraudulent proceeds, from which he allegedly paid Chambers $14,500.
In addition to the conspiracy, Chambers and Nevins are charged together in one count of wire fraud and two counts of money laundering.
Phillips cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney John E. Cowles. It was investigated by the U.S. Secret Service, the Department of Housing and Urban Development – Office of Inspector General, the Federal Deposit Insurance Corporation-Office of Inspector General, and IRS – Office of Inspector General.