Industry News

Another Kansas City politician indicted on mortgage fraud charges

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The elected official who ran Jackson County, Mo., for more than a decade and her husband were among 11 people indicted by a federal grand jury Thursday for their roles in an alleged mortgage fraud scheme. Katheryn J. Shields, 60, and her husband Phillip F. Cardarella, 59, both of Kansas City, deny participating in a scheme to fraudulently inflate the purchase price of a home they were attempting to sell in order to generate additional loan proceeds. According to the indictment, members of an alleged mortgage fraud ring approached Shields and Cardarella in September, after their Kansas City home had been on the market for 18 months. Although the house was listed for $699,950 -- more than $150,000 less than the original asking price -- members of the ring drew up a contract that falsely stated a $1.4 million purchase price, prosecutors said. According to the indictment, Shields and Cardarella were to receive $707,000 from the sale, while car dealer Raymond Walter Zwego Jr., 58, and o...