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By stan_sipple

Guilty plea from participant in $24million mortgage fraud ring operating in metropolitan Kansas City. KC Business journal.

Home builder Steve Middleton, 46, pleaded guilty Monday to two counts of conspiracy to commit bank fraud and admitted that he had taken part in a $25 million mortgage fraud scheme, U.S. Attorney for the District of Kansas Eric Melgren said Monday. The defendant admitted that he had conspired with builder F. Jeffrey Miller and others to manipulate home buyers, inflate appraisals and falsify loan applications submitted to federally insured lenders.

Mortgage Fraud Blog has covered the ongoing scandal.

Among the techniques the conspirators used: coerced appraisers to inflate appraisals. Sold homes to their employees at inflated prices. Moved purchasers into homes before closing, raising the price at the last minute and coercing them into taking out larger loans. Sentencing is in March.

Full post as published by Showmeblawgs on December 17, 2007 (boomark / email).