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Four sentenced in Ohio fraud for profit scheme

NationalMortgageProfessional.com
Jan 26, 2010

Four participants in an extensive mortgage fraud scheme that affected 210 residential properties, including 205 in Montgomery County, have been sentenced in federal court by U.S. District Judge Michael R. Barrett. Carter M. Stewart, United States Attorney for the Southern District of Ohio, Keith L. Bennett, Special Agent in Charge, Federal Bureau of Investigation; Jose Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation, and other members of the Dayton Mortgage Fraud Task Force announced the sentences handed down by U.S. District Judge Michael A. Barrett. Edward McGee was sentenced to three years' probation and fined $140,000. Edward McGee pleaded guilty on May 11, 2009 to one count of conspiracy to commit money laundering. His son, Kenneth O. McGee was sentenced to 32 months in prison and fined $12,500. Kenneth McGee pleaded guilty on May 11, 2009 to one count of conspiracy to commit mail fraud, wire fraud, and money laundering, and one count of conspiracy to commit money laundering. Robert Mitchell was sentenced to 32 months in prison and fined $12,500. Mitchell pleaded guilty on March 11, 2009 to one count of conspiracy to commit mail fraud, wire fraud' and money laundering, and one count of conspiracy to commit money laundering. Kamal J. Gregory was sentenced to 10 months in prison and fined $12,500. Gregory pleaded guilty April 14, 2009 to one count of conspiracy to commit mail fraud, wire fraud and money laundering, and one count of conspiracy to commit money laundering. These cases stem from a 13-count indictment involving six defendants which was originally handed down on June 25, 2008. The four sentenced today were part of a conspiracy that operated and controlled various Dayton-based real estate mortgage and title insurance related businesses and corporations that schemed to defraud 33 mortgage lending institutions out of over $7 million in loan proceeds and other things of value. This scheme involved arranging, facilitating, and manipulating documents associated with real estate sales and closings in order to fraudulently obtain excess mortgage loan proceeds generated from the sale of residential properties for the personal benefit of the co-conspirators. Two others involved in the scheme were previously sentenced. Julian M. Hickman, formerly of Centerville and now living in East Cleveland, pleaded guilty on Dec. 15, 2008 to conspiracy and tax crimes. Hickman was sentenced on Dec. 10, 2009 to 33 months' imprisonment. Jessica A. Zbacnik of Monroe, pleaded guilty on July 29, 2009 to one count of conspiracy to commit money laundering and one count of conspiracy to commit mail fraud, wire fraud, and money laundering. She was sentenced on Dec. 3, 2009 to 30 months' imprisonment. Agencies participating in the Greater Dayton Mortgage Fraud Task Force in addition to the FBI and IRS include the Ohio Department of Commerce Division of Financial Institutions, the Ohio Attorney General’s Office, the U.S. Postal Inspection Service, the U.S. Department of Housing and Urban Development Office of Inspector General, and the Perry Township Police Department.  For more information, visit http://cincinnati.fbi.gov.
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