Jury Convicts Former Wichita Man in $2.7 Million Mortgage Fraud Scheme
KANSAS CITY, MO—Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Wichita, Kansas man was convicted in federal court today of his role in a $2.7 million mortgage fraud scheme.
Terrence Matthew Brown, also known as Terry Brown, 48, of Round Rock, Texas, formerly of Wichita, was found guilty of conspiracy to commit wire fraud and five counts of wire fraud.
Evidence presented during the trial indicated that Brown participated in a mortgage fraud conspiracy in 2006 in which mortgage lenders were defrauded in 10 separate loans for five properties, which were obtained by false statements in loan applications and other documents. Brown lied to lenders about his income, his employment, his assets and liabilities, his intent to occupy the properties, and other matters. Mortgage loans totaling $2.7 million were approved to purchase properties in Greenwood, Missouri; Kansas City, Missouri; Overland Park, Kansas; and Leawood, Kansas, all within a period of three months.
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 received more than $200,000 in illegal kickbacks. In order to receive the kickbacks without the lenders finding out, Brown submitted false invoices to the title companies closing the loans. The invoices were in the names of businesses that claimed to be entitled to payment for services supposedly rendered.
All the loans went into default and the properties were foreclosed.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Missouri, deliberated for about 90 minutes before returning the guilty verdict to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, April 28, 2014.
Under federal statutes, Brown is subject to a sentence of up to 120 years in federal prison without parole, plus a fine up to $1.5 million and an order of restitution. A sentencing hearing is scheduled for August 1, 2014.
This case is being prosecuted by Assistant U.S. Attorney Linda Parker Marshall. It was investigated by the FBI.