Dayton Feds Indict Six In Mortgage Fraud Involving 210 Properties, 63 Investors, $15M In Bogus Loans; 90% Ended In Foreclosure

In Dayton, Ohio, the Dayton Daily News reports:

• Five Dayton-area residents were indicted Wednesday, June 25, on federal charges they were operating an extensive mortgage fraud scheme that affected more than 200 area properties. Also indicted was a former Centerville resident who now lives in East Cleveland.(1)

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• The scheme involved 210 residential properties, including 205 in Montgomery County, along with 63 investors, and led to foreclosure of more than 90 percent of the properties, [United States Attorney Gregory G.] Lockhart said. [...] Those purchases were financed with $15 million in mortgage loans obtained through fraud committed against 33 lending institutions, the indictment said.

For more, see Five Dayton-area residents indicted in mortgage fraud case.

(1) The indictment charges the following people: Julian M. Hickman, 30, of East Cleveland; Kamal J. Gregory, 34, of Centerville; Jessica A. Zbacnik, 41, of Monroe; Robert Mitchell, 42, of Vandalia; Edward McGee, 74, of Dayton; Kenneth O. McGee, 49, of Dayton. The six operated and controlled various real estate, mortgage and title insurance-related businesses and corporations throughout the Greater Dayton area including Commercial Property Advisor Group (CPAG), Diamond Vision Capital Group, First Union Appraisals, Gem City Professional Services (GCPS), Option One Appraisals, JMH Real Estate, River City Appraisers, Alliance Mortgage, Gregory Investments, Inc., KG Enterprises, Mad River Properties, Premier Mortgage Funding of Ohio, Star Point Mortgage, Ohio Financial Group, Mortgages Unlimited, Allied Mortgage, E & A Investments, and KM Investments.