Two Cop Plea In Texas Mortgage Scam Involving 200+ Newly Built Homes

In Sherman, Texas, the U.S Attorney - Eastern District of Texas announces:

• United States Attorney Rebecca A. Gregory announced [yesterday] that [Michael Guy Cary, Sr., 53,] a Florida businessman and [Richard Kirkpatrick, 53,] a Fort Worth real estate appraiser have pleaded guilty in connection with their roles in an extensive mortgage fraud scheme in the Eastern District of Texas.

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• According to information presented in court, between August of 2004 and May of 2006, CARY's scheme involved the purchase and sale of 211 homes in the Eastern District of Texas in a variety of fraudulent transactions. CARY purchased the homes directly from home builders after which he arranged the transfers of the deeds into names deceptively similar to that of the home builders. Once the transfers had been completed, CARY had real estate appraisers artificially inflate the values of the homes and arranged their subsequent sales to out-of-state investors, who believed that they were purchasing the homes directly from the home builders and who qualified for mortgage loans on these inflated amounts based on fraudulent loan applications. KIRKPATRICK provided the inflated appraisals on 89 of the 211 homes.

For more, see U.S. Attorney Press Release - Florida Businessman And Fort Worth Home Appraiser Plead Guilty In Mortgage Fraud (Fraud Involved Over 200 Homes in the Eastern District of Texas).