Two Texans were charged by a federal grand jury Friday in connection with an alleged $10 million mortgage fraud scheme, officials said.

Michael D. Goodson of Spring, Texas, and Nancy Booth, of Humble, Texas, were accused of conspiracy to commit mail and wire fraud and taken into custody Friday, according to Donald DeGabrielle Jr., United States Attorney for the Southern District of Texas.

The pair appeared before a United States magistrate Friday after being taken into custody by agents of the Federal Bureau of Investigation and inspectors of the United States Postal Inspection Service, DeGabrielle’s office said.

Goodson and Booth conspired together beginning in March 2003 in a so-called mortgage fraud scheme in which they allegedly provided false information to a lending institution to secure loans for straw purchasers to purchase homes located in Montgomery, Bryan, Spring and Tomball, Texas, according to the indictment.

The indictment alleges that Booth, a loan processor and loan officer for a mortgage brokerage firm, received a broker’s premium from the allegedly fraudulently obtained loan proceeds.

Goodson, who did business under a number of business names including MGN Construction, Boston Interiors & Design and Anointed Designs, allegedly submitted invoices for payment from the fraudulently obtained loan proceeds, officials said.

The indictment alleges that Booth, a loan processor and loan officer for a mortgage brokerage firm, received a broker’s premium from the allegedly fraudulently obtained loan proceeds.

Goodson, who did business under a number of business names including MGN Construction, Boston Interiors & Design and Anointed Designs, among others, allegedly submitted invoices for payment from the fraudulently obtained loan proceeds, according to the indictment.

According to the indictment, the scheme involved Goodson locating residential properties to purchase, recruiting compensated individuals with good credit to act as straw borrowers on applications for residential mortgage loans to purchase one or more of the properties.

The indictment alleges that Goodson told the straw borrowers they were investing in real estate to be managed by one of his property management companies, officials said.

Booth allegedly used her position as a licensed loan officer to complete Uniform Residential Loan applications in the names of the straw borrowers to obtain 100 percent funding of the full sales price – ranging from $420,000 to more than $700,000 – located by Goodson and locating lending institutions to fund the loans, officials said.

The indictment accuses Goodson and Booth of conducting their scheme to defraud the lending institutions through the use of the U.S. Mail, private or commercial interstate carriers and through the use of interstate wire communications, officials said.

Conspiracy to commit mail and wire fraud carries a maximum statutory term of imprisonment of five years, without parole, and a $250,000 fine, upon conviction.

The indictment also informs the defendants that, if convicted of the conspiracy charge, the United States intends to seek an order from the court compelling each of them to forfeit their interest in almost $11 million in property, which constitutes the proceeds of or was derived from proceeds traceable to their alleged illegal conduct.

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