Ohio Feds Charge Two With Bank & Bankruptcy Fraud In Alleged Intrafamily Flipping Scam

The Toledo Blade reports:

• "Federal prosecutors have charged two Lima, Ohio, real-estate investors with bank fraud and bankruptcy fraud, saying the men defrauded lenders of $2.2 million by “flipping” properties to inflate values, creating phony rental and purchase agreements, and failing to disclose the actual buyers and their debts. Charged in U.S. District Court in Toledo are Robert Frye and Matthew Ebbeskotte, who prosecutors say formed Skyway Partnership Investments LLC in 1999 and arranged for the purchase of 46 properties through falsified mortgage-loan documents. [...] Lima housing officials found “a pattern of purchases and foreclosures” that seemed suspect."

Not charged were the defendants' wives and parents, who allegedly also participated in the scheme. For more, see Bankruptcy fraud laid to 2 Lima men.