Indianapolis-Area Prosecutor Considering Mortgage Fraud Charges In Alleged Rent Skimming Scam

In Indianapolis, Indiana, WISH-TV Channel 8 reports:

• The Keystone Towers were once an upscale apartment complex, the home of professional athletes and up-and-comers. The towers, which sit on the main highway between Indianapolis and Fishers, have deteriorated to the point of blight. They are infested with rats, human feces and sometimes, the homeless.

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• Documents compiled by investigators show the building has been owned by a number of people, most recently Southeastern Partners of Hickory, North Carolina. But investigators believe the problems of Keystone Towers can be traced to one man, Jorges Newberry, who they say bought the towers in 2003 and then abandoned it.

• Indianapolis Housing Agency Executive Director Bud Myers said, "What Jorges has done is take money off the top, put it in his pocket and moved on to other communities, other cities, other states."

• Marion County Deputy Prosecutor David Wyser is reviewing charges, including welfare and mortgage fraud against the Newberry. He believes it's all part of a scam. "They buy these properties, they obtain loans, they default on these loans. They take all the money, they leave and they leave it in foreclosure -- then transfer title. They obtain payments through HUD programs even after the property has been sold," explained Wyser.

For more, see Special Report: Indy Eyesore (A once prominent landmark has becomea mess). RentSigmaSkimming