Kentucky attorney indicted for real estate loan fraud

A federal grand jury has indicted Louisville, Ky., attorney Dean Sexton with conspiracy to defraud multiple mortgage lenders.

The indictment charges that Sexton conspired with other unnamed individuals to cause out-of-state residential mortgage lenders to fund fraudulent loans in excess of $1.5 million, according to a news release from David L. Huber, U.S. Attorney for the Western District of Kentucky.

Sexton allegedly created loan documents, such as loan applications and HUD-1 settlement agreements, that contained false information relating to borrowers’ employment, income, assets, down payment and credit information, Huber’s office said.

The indictment also charges that Sexton closed four loans on two properties that he owned by concealing his ownership by providing a fake deed in someone else’s name and by creating a false payment history, according to Huber’s office.