Brothers Charged with Mortgage Fraud
Las Vegas, Nev. - Two brothers indicted in U.S. District Court on charges they made false statements to lending institutions for the purpose of obtaining multiple home mortgages, will make initial appearances in court today, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
STEFAN CROSBY, aka Stefon Humber, age 35, and LIONEL CROSBY, age 33, both of Las Vegas, will appear at 3 p.m. today before U.S. Magistrate Judge Lawrence R. Leavitt for an Initial Appearance and Arraignment and Plea hearing. They were indicted last week and charged with one count of conspiracy to make false statements for the purpose of obtaining home loans. STEFAN CROSBY and LIONEL CROSBY are also charged with 10 counts and three counts, respectively, of housing loan fraud. The defendants were arrested yesterday in Las Vegas by Special Agents of the U.S. Housing and Urban Development (HUD) Office of the Inspector General and Officers with the North Las Vegas Police Department. If convicted, they are facing up to five years in prison and a $250,000 fine on the conspiracy charge, and up to two years in prison and a $250,000 find on each of the housing loan fraud charges.
The Indictment alleges that from approximately May or June 2001 to March 19, 2003, STEFAN CROSBY and LIONEL CROSBY conspired to make false statements for the purpose of obtaining HUD insured home loans. The defendants allegedly recruited "straw buyers" to apply for the loans to purchase residences in the Las Vegas area, knowing that the straw buyers did not qualify for the loans. A "straw buyer" is a person who buys a house as if he/she intends to live in the house, but in fact, never intends to live in the house. The defendants then created fraudulent documents, such as loan applications and verifications of employment, rent, and identification, and placed false information in them to support the loan applications for themselves and the straw buyers.
STEFAN CROSBY is charged specifically with filing false documents to obtain two loans in his name, two loans in his brother's name, and six loans in the names of straw buyers. Six of the homes are located in Las Vegas; three are located in North Las Vegas; and one is located in Henderson. LIONEL CROSBY is charged with filing false documents to obtain the two loans in his name, and one loan in the name of a straw buyer.
The case is being investigated by Special Agents with the Office of the Inspector General for HUD and Detectives with the North Las Vegas Police Department, and prosecuted by Assistant United States Attorney Brian J. Quarles.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.