Erie, Pa. Federal Mortgage Fraud Probe Yields More Charges; New Arrest

In Erie, Pennsylvania, the Erie Times News reports:

• A second key figure in the ongoing federal investigation into suspected mortgage fraud in the city of Erie looks to be poised to plead guilty to fraud and money-laundering charges. The U.S. Attorney's Office in Erie on Thursday filed criminal charges against Frank Kartesz II. Kartesz, 39, of Harborcreek Township, is accused of one count each of mail fraud and criminal conspiracy to commit mail fraud, wire fraud and bank fraud. The government alleges Kartesz was part of a scheme in which he and others bought run-down houses and sold them at artificially inflated prices. Most of the buyers were low-income people who knew little about the home-buying process.

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• Kartesz is the second person charged in the federal probe so far. His business partner in K&D Enterprises, Robert L. Dodsworth, pleaded guilty to fraud charges in November. [...] Most of the sales under investigation occurred in low-income Erie neighborhoods, and most of the financing was arranged through subprime mortgages.

For more, see New arrest in fraud case.

Go here for earlier posts on this Federal mortgage fraud probe.