Industry News

Kansas City councilwoman charged in mortgage fraud scheme

Prosecutors say she never lived in home used as collateral for loans

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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 ...