Industry News

Illinois men sentenced in real estate fraud scheme

Pair defrauded banks out of more than $1 million

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Two central Illinois men were sentenced last week to 20 months in federal prison for defrauding banks and mortgage companies of more than $1 million in a mortgage fraud scheme, officials said. U.S. District Judge Richard Mills sentenced Randolph McAfee, age 38 of Springfield, Ill., and Darrin Shipley, age 38 of Peoria, Ill., to 20 months in prison and ordered that the defendants pay restitution in the total amount of $1,125,446 to four banks and mortgage lending companies the two defrauded in the late 1990s. Judge Mills allowed McAfee and Shipley to self-report to a federal prison facility at a date to be determined by the Bureau of Prisons. McAfee and Shipley pled guilty in December 2004 to a single count of bank fraud related to the sale of approximately 100 properties in 1997 and 1998, officials said. During the plea hearing, the two admitted that they advertised that individuals could purchase properties with "no down payment" or "no money down" through their business, Centra...