Former Kansas Man Indicted for $2.3 Million Mortgage Fraud Scheme
| U.S. Attorney’s Office July 14, 2011 |
KANSAS CITY, MO—Beth Phillips, United States Attorney for the Western District of Missouri, announced today that a former Wichita, Kan., man has been indicted by a federal grand jury for his role in a $2.3 million mortgage fraud scheme.
Terrence Matthew Brown, also known as Terry Brown, 45, of Round Rock, Texas, formerly of Wichita, was charged in a seven-count indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, July 13, 2011.
The federal indictment alleges that Brown participated in a mortgage fraud conspiracy in 2006 in which mortgage lenders were defrauded in four separate loans that were obtained by false statements in loan applications and other documents. Mortgage loans totaling $2,374,000 were approved to purchase properties in Greenwood, Mo., Kansas City, Mo., Overland Park, Kan., and Leawood, Kan.
According to the indictment, Brown and co-conspirators structured the home purchases in such a way that Brown would receive money from the loan proceeds without the knowledge or consent of the lenders. Brown allegedly received approximately $192,000 in illegal kickbacks.
In addition to the conspiracy, the indictment charges Brown with six counts of wire fraud.
Phillips cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Senior Litigation Counsel Linda Parker Marshall. It was investigated by the FBI.