DELAWARE, Ohio -- A Central Ohio woman who pleaded guilty last week to mortgage fraud was expected to withdraw her plea on Monday.
Investigators said Gihan Zalat filed loan applications with false information and was the ring leader of a multi-million dollar scheme that caused many lending companies to go bankrupt, NBC 4's Candice Lee reported.
Zalat did not withdraw her guilty plea on Monday, choosing instead to serve her four-year sentence on eight felony counts, including five counts of money laundering.
In February 2008, a grand jury handed down a 15-count indictment against Zalat and alleged co-conspirator Scott McCann of Upper Arlington after a year-long investigation.
Officials alleged that the scheme involved homes that were appraised at more than their fair value and then sold above market price to ring members.
The homes were refinanced through unsuspecting lending institutions, which provided those involved with a significant amount of money.
Members, which included several appraisers and brokers, also used falsified tax returns and loan documents to swindle banks out of millions of dollars.
The scheme was run out of the Happy Greek restaurant in the Short North, which Zalat co-owned.
McCann is scheduled to be sentenced on April 13.
Arrest warrants have been issued for the remaining six members of the fraud ring.
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