Sept. 2, 2010

OVERLAND PARK MAN PLEADS GUILTY IN $3 MILLION MORTGAGE FRAUD

KANSAS CITY, KAN. – Jason L. Rabicoff, 34, Overland Park, Kan., has pleaded guilty to taking part in a $3 million mortgage fraud scheme, U.S. Attorney Barry Grissom said today.

Rabicoff pleaded guilty to one count of wire fraud. In his plea, he admitted that in 2006 while he worked as a loan officer at Apex Financial in Olathe, Kan., he took part with his brother, Eric M. Rabicoff, and others in a scheme to defraud mortgage lenders. The conspirators arranged for straw buyers to purchase homes that were for sale by owners. They obtained financing for the deals by submitting false loan applications to lenders. False information including employment history, income and rent history was submitted in order for the straw buyers to obtain loans they would not otherwise qualify to receive. 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.

Jason Rabicoff assembled loan files for straw buyers. He included false rent histories as well as false employment and income amounts to ensure they would receive loans for which they did not qualify. In one case, Jason Rabicoff falsified a loan application for a house in the 4000 block of SW Marline in Lee’s Summit, Mo., resulting in the lender sending $379,227 to a title company for closing.

Rabicoff is set for sentencing Dec. 13, 2010.

Other defendants include:

Bora Ly, who is set for sentencing Dec. 6, 2010.
Deborah Saulmon, who is set for sentencing Dec. 6, 2010.
Anthony E. Carollo, who is set for sentencing Nov. 1, 2010.
Rebecca Gelwix,, who is set for sentencing Nov. 8, 2010.
Anthony Painton, Jr.,who is set for sentencing Nov. 8, 2010.
Eric M. Rabicoff, who is set for jury trial Oct. 5, 2010.
Lucas R. Collier, who is set for jury trial Oct. 5, 2010.
Kong Bun Ly, who is set for sentencing Dec. 6, 2010.
Richard Ngek, who is set for jury trial Oct. 5, 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.

In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.