Cleveland Grand Jury Brings 96-Count Indictment Against 12 In Alleged $14M+ Straw Buyer, Mortgage Fraud Racket; Left Home Sellers Clipped Out Of $3M

In Cleveland, Ohio, The Plain Dealer reports:

• A Cuyahoga County grand jury indicted 12 people and three companies Friday in what prosecutors say was a brazen $14.7 million mortgage fraud scheme involving seven upscale houses - some with waterfront views. Prosecutors say a California woman orchestrated the scheme, enlisting the help of real estate agents, title agents, mortgage brokers, an appraiser and buyers who were all also indicted. Prosecutors said the enterprise involved fraudulent mortgage applications, exorbitant seven-figure loans - and a scam that resulted in the theft of more than $3 million from sellers who were misled into believing they were paying a relocation fee for the buyers.

• In addition to alleged ringleader Susan Alt, 56, of Santa Monica, those indicted included two other California women - one described as the primary straw buyer - mortgage brokers from Florida and Texas, and six people working in Northeast Ohio at the time of the deals.(1)

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• The 96-count indictment follows an investigation by the Cuyahoga County Mortgage Fraud Task Force, which is composed of 16 federal, state and local enforcement agencies.

For more, see Cuyahoga County grand jury indicts 12 people, 3 companies in mortgage fraud scheme.

(1) According to the story, the companies that were indicted are: Equator Group, described by prosecutors as the shell company Alt used to launder money, and two companies that share a suite of Beachwood offices: Century 21 Homestar Realty and Homestar Title. Other individuals who were indicted include: Anthony Geraci, 39, of Mayfield, who prosecutors say owned and operated Century 21 Homestar; Deborah Brazalovics, 56, and her son Paul Brazalovics, 33, both of Wickliffe and both listed as having worked for Homestar Title; real estate agent Charlotte Gill, 38, who worked at Century 21 Homestar and who prosecutors now show with a Maine address, real estate agent Richard Kilfoyle, 51, of Chester Township, and appraiser William Werner, 39, of Cleveland.