Utah Feds Indict Six In Cash Back Flipping Scam; Straw Buyers Include Local TV Sports Anchor

According to several Utah media reports:

• Six Utah residents have been indicted by a federal grand jury on charges they conspired in what prosecutors are calling a mortgage fraud scheme that totaled at least $18 million in fraudulent loans. [This week] a federal grand jury returned a 15-count indictment against six residents, charging them with counts of wire fraud, mail fraud and conspiracy to commit a crime.

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• The alleged fraud involved entering false sales prices in the Multiple Listing Service, then using the exaggerated figures to support inflated appraisals of other properties in the affluent River Bottoms area. The defendants used straw buyers to flip five residences in the neighborhood, according to the indictment, and kept the difference between the home loan and the actual value of the properties.

Charged in the indictment are: David R. Bolick, 51, owner of Home Owners Group (H.O.G.) and Paragon Investment Group L.L.P., Bradley Grant Kitchen, 40, who allegedly participated in real estate transactions with H.O.G. and Paragon, Steve Wells Cloward, 40, a licensed real estate appraiser with Express Appraisal, Ron K. Clarke, 40, a licensed real estate agent, and Jeffery David Garrett, 43, and Rebecca Ann Hadlock, 31, both of whom are escrow officers with Precision Title Co.

Reportedly, three lower-level participants have copped plea deals in state court and have agreed to cooperate with prosecutors. Among those cooperating is KUTV Channel 2 sports anchor/reporter Dave Fox, who pleaded guilty in September for his participation in the operation as a straw buyer. For more, see:

• 6 Utahns face mortgage fraud counts (They're accused of wire fraud, mail fraud, conspiracy) (Deseret Morning News),
• 6 charged in Provo home-sale scheme (The Salt Lake City Tribune),
• A Major Federal Indictment Accusing Utahns Of Mortgage Fraud (KUTV Channel 2) - or go here for KUTV Channel 2 video report.