Illinois Feds Charge 3 For Fraudulently Obtaining FHA-Backed Mortgages

In Rockford, Illinois, the Rockford Register Star reports:

• A Rockford loan officer and two others were charged today with generating thousands of dollars in commissions by creating fake documents to get unqualified families loans backed by the Federal Housing Authority. Mitchel A. Fuchs, 40, also known as Mike Fox, was charged with mortgage fraud in a 14-count indictment. Also charged were 25-year-old Jessica L. Gibson of Loves Park, who was Fuchs’ mortgage-loan processor, and Frank G. Anast, 58, of Rockford, who was self-employed in computer work.

According to the allegations:

1. Fuchs created fictitious cashier’s checks and bank checks to give the appearance that his customers had invested their own funds in the properties they were buying,
2. Fuchs paid Anast to create fictitious pay stubs and W-2s for Fuchs’ loan customers,
3. Fuchs and Gibson altered pay stubs and W-2s for other customers, changed credit reports and created fake investment statements.

The case is being prosecuted by office of the U.S. Attorney for the Northern District of Illinois.

For more, see 3 charged in another mortgage fraud ring.