Cleveland Feds Indict Ex-Cops In "Cash Back" Mortgage Scam

In Cuyahoga County, Ohio, The Cleveland Plain Dealer reports:

• Two former Lakewood police officers have been indicted on federal mortgage-fraud-related charges stemming from the purchase of 13 rental properties. Richard Alvarez, 38, of Medina, and Marcus Adkins, 32, of Lorain, are charged with conspiracy to commit wire fraud and wire fraud. Both resigned from the Lakewood Police Department last year for personal reasons. According to federal prosecutors, Alvarez and Adkins were partners in an enterprise that bought 13 properties - 11 in Cleveland, one in Garfield Heights and one in Toledo - in 2005 and 2006. All 12 properties in Cuyahoga County have since gone into foreclosure. The indictment alleges that they bought the properties at market value but inflated the purchase price on mortgage applications, claiming the money was for repairs. Title companies would then distribute money to the two men or to their company, Copper Properties Inc., the indictment said. The two men also are accused of misrepresenting the source of down payments, claiming there were false second mortgages made on the properties, and creating false leases and rental agreements.

For the story, see Ex-officers accused of mortgage-related fraud.

From the Cleveland-Area U.S. Attorney's office:

• Indictment - U.S. v. Alvarez, et al.
• Press Release.