Pair Charged in Indiana Mortgage Scam

Two men who authorities said lined up properties or investors in a multi-million dollar mortgage-fraud scheme were sentenced to prison, the Fort Wayne News-Sentinel reports.

Putting a stop to a fraudulent scheme that affected many in the Indiana housing market, federal judges sentenced John Wagner, 46, to three years and a month in prison and Frankie Lamont Howard, 38, to two years.

Both pleaded guilty to charges of money laundering and conspiracy to commit mail fraud. Wagner and Howard obtained more than $4 million in fraudulent home loans on houses in low-income neighborhoods of Indianapolis.

Authorities said Wagner recruited investors for Romero Brice, the owner of the Indiana mortgage company, Promise Land Mortgage, with offices located in Indianapolis.

Brice obtained houses at fair market value and then used the investors to buy back the houses at three to four times the price, authorities said.

Brice was sentenced on Tuesday to seven years in prison.

Prosecutors said Brice obtained at least 83 loans between late 2000 and early 2002 based upon false documents, with Wagner involved in 53 of the mortgage loans valued at about $2.65 million.

After being apprehended, the full scope of the scam was uncovered and Howard was charged with 31 fraudulent transactions accounting for about $1.65 million.

The judges also ordered Wagner and Howard, both of Indianapolis, each to pay more than $1 million in restitution for their mortgage fraud.

SOURCE: Fort Wayne News-Sentinel