Two Central Ohio men have pleaded guilty in connection with a $15 million mortgage fraud scheme that cost lenders more than $6 million.
Cameron Green, 35, and Jason Simcox, 38, both of Pickerington, pleaded guilty to fraudulently obtaining approximately $15,037,421 in mortgage loans to finance the purchase of 26 real estate properties in Maricopa County, Arizona, in a scheme that cost lenders approximately $6,115,965 in losses.
Green's plea was entered on January 17. Simcox pleaded guilty January 20.
Officials said that between August 2006 and May 2007, the two men applied for loans using false income, assets, and occupancy statements on the loan applications. The mortgage loans were inflated to allow Simcox and Green to use the excess mortgage proceeds to generate cash kickbacks payable to co-conspirators that were undisclosed to the mortgage lenders. The co-conspirators then provided the money to Simcox and Green via interstate wire transfers, investigators said.
Officials said the men used a mortgage brokerage company they co-owned, Vanguard Mortgage, located in Westerville, to finance the purchases of the properties. Each man inflated his income, minimized his assets, failed to disclose his ownership of several other properties on which he held mortgage loans, and concealed the fact that he intended to receive substantial cash kickbacks after the closing of three properties. Simcox and Green received approximately $1,469,263 in seller kickbacks, real estate agent commissions, real estate agent commission kickbacks, and fees.
All 26 of the Arizona properties were subsequently sold short or foreclosed upon due to the borrowers being unable to pay the monthly mortgage payments. The mortgage lenders incurred approximately $6,115,965 in losses.
Each man pleaded guilty to one count of money laundering, which is punishable by up to ten years in prison, a fine of up to $250,000 or twice the value of the property involved, whichever is greater, and restitution to the victims.
Sentencing dates will be scheduled following a pre-sentence investigation by the court.
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