Aug. 31, 2010

MISSOURI MAN GETS 12+ YEARS IN MORTGAGE FRAUD CASE

KANSAS CITY, KAN. – Ryan Miller, 36, Kansas City, Mo., has been sentenced to 145 months in federal prison for mortgage fraud, U.S. Attorney Barry Grissom said today. Miller also was ordered to pay more than $5.8 million in restitution.

Miller pleaded guilty in U.S. District Court in Kansas City, Kan., to one count of conspiracy to commit mortgage fraud, one count of wire fraud, one count of money laundering, and one count of aggravated identity theft. In his plea, Miller admitted he conspired with co-defendants Wildor Washington, Jr., David Kostelec, Amanda Childs, Gregory Stevenson and others to fraudulently obtain mortgage loans. The conspirators submitted fraudulent loan applications and property appraisals to lenders to obtain money and then transferred the proceeds to bank accounts they controlled for their own use. Among the business entities used by the conspirators was Approved Mortgage, The Mortgage Connection, Atlantic Mortgage, TERM Appraisers, Apex Appraisals, Midwest Appraisals, Miller Appraisals, Pinpoint Appraisals, Summit Appraisals, Alexandra Enterprises, and Ryan Miller Appraisals, LLC.

The conspirators obtained loans for purchasing and refinancing properties by submitting false and fraudulent loan applications that contained false statements of borrowers’ incomes and employment, false lien information, false statements of occupancy, false sales contracts and false notarization of loan documents. They submitted appraisal reports containing inflated property values and forged signatures of licensed appraisers.

In his plea, Miller admitted that on Jan. 11, 2002, he and other conspirators formed TERM Investment Group LLC, also known as Term Appraisers. Appraisals prepared by TERM contained false and fraudulent information that was submitted to lenders. On Aug. 15, 2002, Miller aided co-defendant Wildor Washington, Jr., and others in preparing a false and fraudulent appraisal on a property in the 12400 block of South Acuff Court in Olathe, Kan. On Feb. 4 and 5, 2003, Miller aided Washington and others in submitting a false payoff statement and a false appraisal on a property in the 11100 block of East 78th Street in Kansas City. Mo. On Feb. 17, 2005, Miller prepared a false appraisal on a property in the 3800 block of Baltimore in Kansas City, Mo. On Feb. 17, 2005, he prepared a false appraisal on a property in the 2300 block of Benton Boulevard in Kansas City, Mo.

Miller also participated in fraudulent activities causing wire transfers to be made of proceeds on a loan for a house in the 1400 block of North 22nd in Kansas City, Kan. As part of the transaction he unlawfully made use of the identity of a licensed appraiser.

Grissom commended the U.S. Postal Service, the Internal Revenue Service, the Johnson County Sheriff’s Department, U.S. Department of Housing and Urban Development - Office of Inspector General, the U.S. Secret Service, and Assistant U.S. Attorney Marietta Parker for their work on the case.