Feds Indict Three More In Erie, Pa. Mortgage Fraud Probe

In Erie, Pennsylvanis, the Erie Times News reports:

• Three Erie County men now face charges of fraud and conspiracy as part of the ongoing federal investigation into a widespread mortgage scam in Erie. U.S. Attorney Mary Beth Buchanan announced Tuesday the defendants were indicted by a federal grand jury in relation to the probe. Indicted Tuesday were Gregory M. Finney, 34, of [...] Erie; Francis R. Conti, 41, of [...] Waterford; and 49-year-old Keith A. Rice, of [...] Harborcreek Township. The government's 17-count indictment alleges that Finney, Conti, Rice and others were part of a scheme in which they bought run-down houses and sold them at artificially inflated prices. The buyers were mostly low-income people who knew little about how to buy a home.

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• Erie businessman Robert L. Dodsworth, 60, pleaded guilty to conspiracy and money-laundering charges related to the case in November. [...] His business partner, Frank Kartesz II, 39, of Harborcreek, was charged with fraud and conspiracy counts on Jan. 31. Kartesz was expected to plead guilty in federal court in Erie on Thursday, but federal officials said that hearing could be postponed. [...] Dave Pesch, the housing counseling manager at Erie's St. Martin Center Inc., said the case shows how widespread mortgage fraud is in Erie. Pesch's agency assists low- and moderate-income homebuyers and worked with dozens of clients caught up in the probe.

For more, see More mortgage charges (3 more indicted by federal grand jury in ongoing fraud case).

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