Two people accused in a mortgage fraud scheme in the Hattiesburg and Laurel areas of Mississippi pleaded guilty to federal charges on Friday, Associated Press reported.

Michael T. Cox, of the Oak Grove, Miss., area, and Jacquelyn B. Mosley, of Hattiesburg, Miss., each pleaded guilty on Friday for their roles in a mortgage conspiracy, according to the U.S. Department of Justice, reports said.

Cox acknowledged preparing fake financial statements between December 2000 and November 2002, and Mosley admitted preparing false and inflated property appraisals, the DOJ said, according to reports.

Ten people allegedly involved in the so-called scam were named last month in a separate federal indictment, which outlines what the DOJ describes as a scheme to inflate appraisals and use fraudulent documents to obtain mortgage loans.

As part of their pleas, both Cox and Mosley said Friday that they conspired with Richard Lucas, who was charged separately in the alleged mortgage scheme, AP reported.

Lucas has pleaded not guilty to charges of bank fraud, nine counts of wire fraud and conspiracy to commit bank fraud, wire fraud and money laundering, according to reports.

U.S. Magistrate Robert H. Walker ordered Lucas, the alleged ringleader of the fraud scheme, to report to a drug treatment center earlier this month, reports said.

Cox acknowledged that he prepared fraudulent documents at Lucas’ request, according to the Department of Justice.

The materials included false pay stubs, false W2 forms and false bank statements showing income or assets that mortgage loan applicants did not have, reports said.

Mosley said that her role in the scheme included preparing false appraisals to make it appear that properties were worth more than they actually were, and as a result, financial institutions loaned more money to applicants than they should have, reports said.

According to court documents, Mosley was a licensed real estate appraiser doing business as J&J Appraisal Services of Hattiesburg between November 2000 and October 2001, reports said. Her partner at the time, Loretta Joy Champ, was charged separately, along with Lucas and eight other defendants, according to reports.


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