Wisconsin Mortgage Broker Agrees To Plead Guilty & Cooperate; Feds Continue Investigation

In Wisconsin, The Janesville Gazette reports:

• "Federal prosecutors say a Lake Geneva mortgage broker swindled lending companies out of more than $4 million through the sales of 19 Walworth County properties. James J. Lytle, 33, used "straw buyers" and fraudulent loan applications to obtain properties, collect seller fees and then let the properties go into foreclosure, often at a loss to the banks, according to a plea agreement he signed May 15. Lytle is expected to plead guilty June 27 to a charge of wire fraud, a felony punishable by up to 20 years in prison and a $250,000 fine."

As part of the plea agreement, Lytle will cooperate (and possibly earn a "get-out-of-jail-free card") with investigators and testify before a grand jury if there are others charged. For more, see:

• Real estate scheme unravels
• Plea Agreement - U.S.A. vs. Lytle