Industry NewsMortgage

Three plead guilty in Kansas City mortgage fraud

Case involves inflated sales price of politician's home

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Three of 11 people indicted in January for an alleged scheme to inflate the sales price of a prominent Kansas City, Mo., couple's home have entered guilty pleas and agreed to cooperate with prosecutors in their investigation and testify against the remaining defendants. Attorneys for three other defendants have also scheduled hearings in which they are expected to enter guilty pleas. James E. Coleman, 59, an accountant who formerly served as president of the board of a Kansas City magnet school, pleaded guilty Monday to his role in what prosecutors called a conspiracy to defraud Fieldstone Mortgage Corp. Also entering a guilty plea on a conspiracy charge Monday was James R. Rhoades, 48, an assistant to another defendant, car dealer Raymond Walter Zwego Jr. Both are Kansas City residents. A third defendant, appraiser Jeremy A. Plagman, 29, of Lee's Summit, pleaded guilty on May 14 to conspiracy to commit mortgage fraud. Plagman admitted to providing an inflated appraisal of $1.2 mill...