Industry News

Second guilty plea in Kansas City mortgage fraud scheme

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A Kansas City, Mo., man faces up to 25 years in prison after pleading guilty to wire fraud and conspiracy charges related to a $14 million mortgage fraud scheme. Terrell Ford, 33, admitted to participating in a conspiracy in which low-income borrowers obtained home loans or refinancing by submitting fraudulently inflated appraisals and false financial information to lenders. Eight people have been charged with participating in the scheme, and Ford is the second to enter a guilty plea. Lenders' actual losses from activities Ford was involved in totaled more than $2.5 million, said Eric Melgren, U.S. Attorney for the District of Kansas. Melgren said Ford and others formed an appraisal company, TERM Appraisers, which submitted fraudulent loan applications to lenders. Money from fraudulently obtained loans was deposited in a bank account in the name of Liberty Escrow. Ford admitted participating in the scheme from Jan. 11, 2002, through Jan. 8, 2004, allowing his electronic s...