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Justice News

Department of Justice
U.S. Attorney’s Office
Northern District of Ohio

FOR IMMEDIATE RELEASE
Thursday, January 9, 2014

Mansfield Man Sentenced To More Than 11 Years In Prison For Mortgage Fraud

A Mansfield man sentenced to more than 11 years in prison and ordered to pay $767,462 in restitution for his role a mortgage fraud scheme which caused approximately $1.3 million in losses to five lending institutions, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

David R. Sharrock, age 71, pleaded was sentenced to 135 months in prison by U.S. District Judge Donald Nugent.

Sharrock was previously found guilty of 26 counts, including conspiracy, bank fraud, wire fraud, bankruptcy fraud and making false statements for his actions, which caused losses to Geauga Savings Bank, J.P. Morgan Chase Bank, Washington Mutual Bank, Interbaby Funding, LLC, and Suntrust Mortgage, Inc.

His daughter, Rhonda J. McElroy, 51, of Bellville, Ohio,was sentenced to six months incarceration followed by six months of home confinement and ordered to pay $65,415 in restitution.

Ronald L Kightlinger, 51, of Crestline, Ohio, and Richard W. Balliett, 45, of Bucyrus, Ohio, were previously sentenced after pleading guilty to crimes related to their roles in the conspiracy.

Balliet was sentenced two years and one month in prison and ordered to pay $169,627 in restitution while Kightlinger was sentenced to six months confinement and ordered to pay $278,000 in restitution.

Sharrock, Balliett, and McElroy sold homes in the cities of Mansfield, Marion, Galion, Plymouth, Shelby, and Bucyrus, Ohio. The sellers made fraudulent misrepresentations to the mortgage lenders by providing undisclosed down payment assistance to the buyers and by submitting fictitious purchase agreements and verifications of deposits. As a result, the sellers signed false settlement statements at closing, according to court documents.

Kightlinger acted as a straw buyer in purchasing a commercial building from David R. Sharrock in Mansfield, according to court documents.

This case is being prosecuted by Assistant United States Attorneys Vasile C. Katsaros and M. Kendra Klump, following an investigation by the Federal Bureau of Investigation.

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Updated March 12, 2015