A Kansas City, Mo., city councilwoman was one of three people indicted by a federal grand jury Wednesday for their alleged roles in a mortgage fraud scheme.

City Councilwoman Saundra A. McFadden-Weaver, 47, was charged with conspiracy and wire fraud in the seven-count indictment, prosecutors said. Also indicted were mortgage broker Ricky L. Hamilton, 52, of Grandview, and Emanuel M. Kind, 51, a Kansas City resident.

According to the indictment, the defendants agreed that McFadden-Weaver would obtain a loan to purchase a home in Lee’s Summit, Mo., where Kind would reside and pay the mortgage and other expenses. McFadden-Weaver allegedly sought loans in excess of the listed sale price of the property to rehabilitate another home in Kansas City.

Hamilton allegedly brokered the loan for McFadden-Weaver knowing that she did not intend to live in the Lee’s Summit residence and would have no responsibility for the property, receiving a $21,865 commission.

Prosecutors said McFadden-Weaver signed a contract to purchase the Lee’s Summit home sight unseen for $400,000 on Sept. 13, 2005. Two weeks later, the city councilwoman signed loan applications totaling $400,000, allegedly providing false income information and misrepresenting that she would occupy the property as her primary residence.

At some point between October 2005 and June 2006, prosecutors said, Kind agreed to purchase the property for $430,000 in hand and $3,200 per month for the remainder of McFadden-Weaver’s life. McFadden-Weaver and Kind allegedly back-dated the document, claiming that it was signed the day after the closing.

In June 2006, McFadden-Weaver and Kind sought to refinance the Lee’s Summit property to avoid foreclosure, prosecutors said. By then, no mortgage payments had been made in more than five months, said Bradley J. Schlozman, United States attorney for the Western District of Missouri. According to some witnesses, Schlozman said, no payments were ever made on the property.

The Kansas City Star reported that U.S. Bank foreclosed on the Lee’s Summit property in August, and that the subsequent sale of the house netted $255,500.

The case was investigated by the Federal Bureau of Investigation and is being prosecuted by assistant U.S. attorney Linda Parker Marshall.

Show Comments Hide 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.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
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