A real estate agent and two former loan officers are among 17 defendants indicted by a federal grand jury for their alleged roles in a $12.6 million mortgage fraud scheme involving 25 residential properties in Missouri.

Real estate agent Angela R. Clark and former mortgage loan officers Cynthia D. Jordan and Stefan M. Guerra are accused of conspiring with 14 property buyers to submit false information to mortgage lenders in order to purchase homes at inflated prices and pocket extra proceeds.

A real estate agent and two former loan officers are among 17 defendants indicted by a federal grand jury for their alleged roles in a $12.6 million mortgage fraud scheme involving 25 residential properties in Missouri.

Real estate agent Angela R. Clark and former mortgage loan officers Cynthia D. Jordan and Stefan M. Guerra are accused of conspiring with 14 property buyers to submit false information to mortgage lenders in order to purchase homes at inflated prices and pocket extra proceeds.

The buyers, who included six California residents, allegedly created shell companies to receive kickbacks of $60,000 to $125,000 per house from builder Jerry Emerick, doing business as Ty Construction and Residential Contracting LLC.

Lenders approved 25 loans totaling $12.6 million from June 2005 to May 2007, prosecutors said, with buyers funnelling off $2.34 million without their knowledge. Clark, 40, allegedly received approximately $381,495 in kickbacks, while the former mortgage brokers received commissions.

Prosecutors said they intend to file separate charges against Emerick, who allegedly calculated the return he wanted for the homes based on the cost of construction plus a "reasonable profit."

Clark then listed the newly built homes in Lee’s Summit and Raymore at inflated prices, prosecutors said, soliciting straw buyers with the help of Jerome Shade Howard, 39, of Anaheim, Calif.

The case is one of the largest mortgage fraud rings ever prosecuted by the United States Attorney for the Western District of Missouri.

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments

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.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Limited time: Get 30 days of Inman Select for $5.SUBSCRIBE×
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