Pennsylvania Feds Charge Erie Man With Fraud Conspiracy, Money Laundering Regarding Fraudulently Obtained Home Mortgages

In Erie, Pennsylvania, the Erie Times-News reports on the legal trouble of local businessman Robert L. Dodsworth and R.L.D. Enterprises. According to the story:

• Dodsworth, 60, is the president of RLD Enterprises, [a] home-redevelopment firm in Erie. He was charged Friday with felony conspiracy and money laundering in relation to an ongoing federal investigation into suspected mortgage fraud. Dodsworth is the first person charged in the probe, which includes a grand jury. [...] Court records indicate Dodsworth -- one of the probe's main figures -- intends to plead guilty at a hearing scheduled for U.S. District Court in Erie on Nov. 19. The government alleges Dodsworth worked with "unnamed co-conspirators," indicating others could be charged.

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• The FBI, Internal Revenue Service and other agencies since the summer of 2004 have been probing whether the sale of nearly 200 city of Erie properties involved inflated appraisals or other fraudulent information that led buyers to pay far more than market value for their homes. Many of the homebuyers have either lost their homes to foreclosure or have fallen behind on payments, according to documents and interviews.

Said one of Dodsworth's alleged victims, "I know it sounds vindictive, but I hope he goes to jail. I'm still upset with everything I had to go through, but I'm glad that finally something's being done about all this. The FBI didn't forget about us."

For more, see 'I hope he goes to jail' (Homebuyers say dealings with businessman charged in mortgage fraud probe seemed 'fishy').

For an earlier story, see Fraud case: Plea close (Erie businessman faces charges in three-year federal probe of suspected mortgage scams).

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