Four Illinois individuals have been indicted by an Illinois grand jury in connection with an alleged $774,000 Chicago mortgage fraud scheme said to have operated in 1999 and 2000.

 

Mark J. Helfand, an attorney; Maria Jackson, a former loan officer; Dawn Jackson, a real estate appraiser; and Jacqueline Jackson, a former loan officer, are accused of bank fraud and aiding and abetting in the indictment filed Dec. 13.

 

The indictment alleges that the defendants would acquire residential properties in Chicago in need of renovation and rehabilitation listed for sale at prices below $50,000 with the intent of “flipping,” or quickly reselling, the properties.

 

Helfand and another attorney allegedly supplied the funds to purchase the properties, according to the indictment.The Jacksons would seek individuals to whom they could immediately resell the properties, the indictment charged.

 

Maria Jackson, her husband James J. Jackson, Jr. (not named as a defendant in the indictment) and Jacqueline Jackson allegedly solicited friends and relatives to buy properties, according to the indictment.

 

The three enticed potential buyers by promising to help pay for renovations and repairs and help them obtain mortgage loans, according to the indictment.

 

Some of the people that they persuaded to buy properties could not afford to purchase them and were not financially qualified for mortgage loans, according to the indictment.

 

The three would gather background information from potential buyers and cause mortgage loan applications to be prepared, the indictment said. At times, they allegedly prepared loan applications as loan officers for Aarhus.

 

Maria Jackson also referred potential buyers to Home Financial of America Corp. for preparation of loan applications, the indictment alleged.

 

Maria Jackson, James J. Jackson Jr., and Jacqueline Jackson caused false information to be placed in mortgage applications, including false information regarding income, assets and employment, the indictment alleged.

 

Helfand, Maria Jackson and others allegedly caused false documents to be created to support the loan applications, including false verifications of deposit, employment and rent, according to the indictment.

 

Dawn Jackson allegedly prepared appraisals that misrepresented the current conditions and fair market values of the property. She appraised properties as if they had been rehabbed and renovated when she knew that they needed rehab and renovation in order to meet the appraised values, the indictment alleged.

 

Jackson allegedly also represented that the subject properties were comparable to properties that she knew had greater values. On at least one occasion, she prepared an appraisal of a property that she herself intended to sell, the indictment alleged.

***

Send tips or a Letter to the Editor to janis@inman.com or call (510) 658-9252, ext. 140.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Hear from Realogy, Pacaso, SERHANT., Spotify, Redfin, Douglas Elliman, and 100+ more leaders at ICNY.Register now×
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription