New Mortgage Fraud Catches Ten People

A new multi-million dollar mortgage fraud attempt has led to ten people being charged for their roles in the plan. The Mississippi fraud scheme had netted more than $10 million.

A mortgage scheme has been unearthed in Mississippi, with most of the multi-million dollar fraud occurring in Madison County. Ten people were caught aiding the fraud, and all have been charged for their part in the scheme. Four of the ten people have been charged with conspiracy and mail fraud for 30 loans totaling $10 million in mortgages.

A separate six-count indictment charges another man with mail fraud on five fraudulent loans totaling just under $2 million. The other five people have waived indictment after being charged with conspiracy to commit mail fraud on 34 mortgages with the total fraudulent loans totaling almost $2 million as well. The scheme involved flipping houses, where a borrower buys a home for a small amount of money and flips the mortgage the same day for an inflated price. The people involved where aware that the mortgage documents they were sending out were issued specifically to flip the houses, a practice that is illegal. No date has been set for trial yet.