Industry News

Another agrees to guilty plea in Ohio real estate fraud

Alleged flipping scheme caused $873,000 in losses
Published on Feb 21, 2006

An Ohio man agreed to plead guilty in connection with a Cincinnati, Ohio, mortgage fraud scheme that caused losses of almost $873,000, according to legal documents in the case. Clarence Harris of Cincinnati, Ohio, agreed to plead guilty to conspiracy to commit bank fraud, wire fraud, mail fraud and filing a false income-tax return in a plea agreement filed Feb. 13. According to court documents, Harris caused losses of $872,910 to financial and lending institutions in connection with his role in the alleged flipping scheme, which, according to media reports, has already resulted in more than 24 guilty pleas. The conspiracy charge carries a maximum penalty of 30 years in prison and a $1 million fine, while the tax-related charge carries a maximum penalty of three years in prison and a $100,000 fine. According to the plea agreement, in the alleged flipping scheme, a person would purchase a piece of real estate at a low value -- for example, $20,000. Then, a buyer would be recruited, usu...

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