Texas Feds Indict 16 In Straw Buyer, Flipping Operation

In Austin, Texas, the Austin American Statesman reported last week:

• A federal grand jury in Austin has indicted sixteen people — 11 of them from Austin — in a multimillion dollar fraudulent real estate flip-for-profit scheme, U.S. Attorney Johnny Sutton's office announced [last week]. The indictment says that the group, led by Cornelius Robinson, 47, of Austin, conspired to defraud mortgage lenders in the purchase of 25 properties in Austin and San Antonio. The defendants are accused of buying the properties and then immediately selling them to a "straw buyer," who was in on the scheme, at a higher price. "The mortgage lenders were deceived as to the true nature of the transaction and financial status of the 'straw buyer,' " who did not make subsequent mortgage payments, said a statement issued by Sutton.

Source: 16 indicted in real estate scheme (Convictions could lead to 30-year sentences).

See also, 16 indicted in Austin-area mortgage fraud scheme: Others charged were:

1. Silvia Seelig, age 45, of Austin, who during the conspiracy, was a licensed real estate agent and an alleged straw buyer;
2. George H. Watson, age 55, of Austin, a licensed attorney who specializes in real estate transactions. Watson served as the closing attorney on numerous real estate transactions associated described in the Indictment;
3. James Douglas Atwood, age 51, of Austin, Cornelius Robinson’s uncle and an alleged straw buyer;
4. Michael Breon, age 39, of Austin, an associate of Cornelius Robinson and an alleged straw buyer. Breon, a licensed loan officer and mortgage broker, was employed by several different loan origination and mortgage companies during the conspiracy;
5. Sindu Sukumaran, age 36, wife of Michael Breon and an alleged straw buyer;
6. Doris Ann Hill, age 40, of Austin, a personal banker employed at Wells Fargo Bank. For a fee, Hill allegedly agreed to provide a false verification of deposit to loan underwriters in relation to real estate transactions;
7. Julius Meyers Lofton, a 45-year-old licensed real estate agent living in Austin and an alleged straw buyer;
8. Roy Rivers, age 52 of Austin, friend of Cornelius Robinson and James Atwood and an alleged straw buyer;
9. Danielle Guice Rosas, a 40-year-old resident of Austin and an alleged straw buyer;
10. Stanley Ma, a 27-year-old resident of the Honolulu, Hawaii area and an alleged straw buyer;
11. Leonard Brown, age 38, of Houston, Texas, and an alleged straw buyer who also allegedly provided a false verification of employment in association with Onyx Consulting and defendant Ma;
12. Russell Snead, a 43-year-old resident of the Seattle, Washington area, an associate of Cornelius Robinson and an alleged straw buyer;
13. Marlon Nathan Torres, age 45, of Hutto, Texas, an associate of Cornelius Robinson;
14. Jeffrey Andre Wilkins, age 46, of Austin, a friend of Cornelius Robinson and an alleged straw buyer; and,
15. Leroy Williams, a 46-year-old resident of Austin and an alleged straw buyer.