CBS 5 - KPHO Pair plead guilty to $15M mortgage fraud scheme

Pair plead guilty to $15M mortgage fraud scheme

Two Ohio men have pleaded guilty to fraudulently obtaining about $15 million in mortgage loans to finance the purchase of 26 real estate properties in Maricopa County.

The scheme cost lenders around $6,115,965 in losses, authorities said.

Cameron Green, 35, entered his plea on Jan. 17 and Jason Simcox, 38, pleaded guilty on Friday. Both men are from Pickerington, OH.

Assistant U.S. Attorney Laura Denton told the court 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, Denton said. The co-conspirators then provided the money to Simcox and Green via interstate wire transfers, Denton said.

The men used a mortgage brokerage company they co-owned, Vanguard Mortgage, located in Westerville, OH, 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, Denton said.

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 in short sales 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, Denton said.

Each man pleaded guilty to one count of money laundering, which is punishable by up to 10 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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