Central Ohio Feds Indict 9 In $25 Million Mortgage Fraud Involving 500+ Properties

(revised 8-31-07)
The Associated Press reports:

• "Nine people have been accused in a $25 million mortgage fraud scheme in which the value of more than 500 real estate properties in central Ohio was exaggerated to mortgage lenders and to prospective buyers, authorities said Wednesday. The nine recruited inexperienced potential buyers, counting on their relative ignorance with real estate to hide the scheme, according to the indictment by the federal grand jury. The defendants are accused of using fraudulent documents to misrepresent the buyers' credit to lending institutions and then obtaining mortgages secured by the inflated value of the properties."

• "The charges include wire fraud, bank fraud, money laundering and tax evasion. Those indicted are: Donald F. Green, 48, of Columbus, real-estate investor; Shawn A. Griffin, 37, of Cleveland, real-estate investor; Aryeh M. Schottenstein, 33, of Oak Park, Mich., real-estate investor; Jeffrey M. Lieberman, 56, of Bexley, real-estate investor; George T. “Terry” Jordan, 50, of Canal Winchester, real-estate agent; Dwayne L. Carter, 37, of Columbus, loan officer; Jonathan L. Boyd, 38, of Columbus, loan officer; Kenyatta Johnson, 37, of Michigan, loan officer; James Darneil Gaither, 37, appraiser."

Sources: Nine indicted in mortgage-fraud scheme (The Columbus Dispatch), 9 Indicted in Mortgage Fraud Scheme (Houston Chronicle).

For a more complete story, see 9 accused of home scams (Money laundering, bogus appraisals cited) (The Columbus Dispatch). For story update, see Two mortgage-fraud cases heard in federal court.

For a copy of the indictment, see U.S. vs. Green, Schottenstein, et al.