Dec. 7, 2010

FOUR SENTENCED IN MORTGAGE FRAUD

KANSAS CITY, KAN. – Four defendants have been sentenced on charges of taking part in a $3 million mortgage fraud, U.S. Attorney Barry Grissom said today.

Those sentenced were:
Bora Ly, 28, Raytown, Mo., who was sentenced to 18 months in federal prison.
Debora Saulmon, 51, Olathe, Kan., who was sentenced to 15 months.
Kong Bun Ly, 30, Kansas City, Mo., who was sentenced to 12 months.
Rebecca Gelwix, 26, Des Moines, Iowa, who was sentenced to eight months.

Each of the defendants pleaded guilty to one count of conspiracy to commit bank fraud, money laundering and wire fraud. They admitted to conspiring with co-defendant Eric M. Rabicoff and others to defraud mortgage lenders and obtain more than $3 million in loans to straw buyers who were not qualified to receive them. They obtained financing by submitting loan applications to lenders that contained false information on employment, income and rent history. The scheme also called for contract prices to be increased and for conspirators to receive money by submitting false invoices to title companies at closing.

In Gelwix’s plea, she admitted to acting as a straw buyer.
In Saulmon’s plea, she admitted using her property management company, Essential Properties, to provide false verification of rent for straw buyers.
In Bora Ly’s plea, he admitted acting as a straw buyer for two homes and setting up a shell company called Global Investing LLC to launder funds from the conspiracy.
In Kong Bun Ly’s plea, he admitted acting as a straw buyer for two homes in Lee’s Summit, Mo.

Co-defendants are:
Eric M. Rabicoff, who is set for sentencing Dec. 27, 2010.
Jason L. Rabicoff, who is set for sentencing Dec. 13, 2010.
Lucas R. Collier, who is set for sentencing Jan. 24, 2011.
Anthony E. Carollo, who was sentenced to 15 months.
Anthony Painton, Jr., who was sentenced to 15 months.
Richard Ngek, who is set for sentencing Dec. 27, 2010.

Grissom commended the Internal Revenue Service, Assistant U.S. Attorney Chris Oakley, Assistant U.S. Attorney Christine Kenney and Assistant U.S. Attorney Richard Hathaway for their work on the case.