Three Indicted in Mortgage Fraud Involving 17 Properties in Cuyahoga County

John McClain, age 48, of Aurora, Ohio; Regina Smith, age 30, of Atlanta, Georgia; and Deborah Wilson, age 58, of Cleveland, Ohio, have been indicted on conspiracy and mail fraud charges related to a mortgage fraud scheme involving 17 properties in Cuyahoga County, between September 2005 and June 2006, Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced today.

The indictment alleges that McClain, while acting as a loan officer, conspired with Smith, a loan processor working for him, and Wilson, a title agent, to fraudulently obtain funds from mortgage lenders through the submission of loan applications with false information. The indictment alleges that 17 real estate transactions were involved in the scheme, leading to a loss of more than $1.5 million to lenders.

Twelve of the properties are in Cleveland, with one each in Garfield Heights, Maple Heights, South Euclid, Euclid and Warrensville Heights.

The indictment results from an investigation conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Matthew W. Shepherd and Mark Bennett.

If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any, the defendants’ roles in the offenses and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and in most cases they will be less than the maximum.

An indictment is only a charge and is not evidence of guilt. The defendants’ are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.