4 indicted in Louisville, KY mortgage fraud allegations

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In the following press release To view links in this forum your post count must be 10 or greater. Your post count is 0 momentarily.announced that a federal grand jury in Louisville returned an indictment against Edward “Ted” House, of Louisville, Kentucky; Nathan Frisbie, of Louisville, Kentucky; Khaliad Raheem, a/k/a Dwayne Cross, of Louisville, Kentucky; and Jerry Crenshaw, of Louisville, Kentucky, with conspiracy to commit wire fraud and bank fraud.

The Indictment alleges that between January 1, 2000, and May 30, 2003, House, Frisbie, Raheem, and Crenshaw conspired with one another to defraud two residential mortgage lenders. The indictment identifies 24 separate fraudulent loan transactions, totaling approximately $1.5 million, in which the named defendants participated. The defendants defrauded the mortgage lenders through various means. Generally, they provided the lenders with false borrower background information in order to fraudulently induce the funding of individual loans. The defendants would provide lenders with false employment and financial information of an applicant in order to get a loan approved. In addition, they would often misrepresent the payment of earnest money or a deposit from a buyer to a seller. The lenders relied on all theses false representations in order to make its decision whether to fund a loan.

For example, House, Frisbie, and, Raheem were fraudulently involved in a $63,750 mortgage loan for the purchase of property located at 801 Dearborn Street in Louisville, Kentucky. In order to fraudulently induce the lender, ABN Mortgage Group, to fund the loan, they provided false and fraudulent information in support of the loan. The fraudulent information included the following: false and fraudulent employment information of the buyer and a closing statement that reflects a fraudulent sales price in that no earnest money or deposit was actually paid by the buyer. Count 1 of the Indictment alleges 21 separate instances in which the defendants conspired to defraud mortgage lenders through manners similar to the above example.

The indictment further charges the defendants with counts of wire fraud and bank fraud. For example, Count 2 charges House, Frisbie, and Crenshaw with obtaining a $59,850 loan for property located at 2712 Algonquin Parkway in Louisville, Kentucky, from National City Mortgage Company under false and fraudulent pretenses. They defrauded National City by providing false information regarding the buyer’s employment and financial information, as well as misrepresenting funds paid by the buyer to the seller. Counts 3 through 5 charge the defendants with similar schemes involving different properties and different lenders.
The full list of properties mentioned in the indictment in Louisville, KY are:
2712 Algonquin Parkway
750 S. 43rd Street
219 S. 28th Street
2521 Elliot Street
2404 Elliot Lane
3814 Vermont Ave
3029 Virginia Ave
1842 Dumesnil St
801 Dearborn St
2318 Burnett Ave
2205 Woodland Ave
720 Sutcliffe
105 North Shawnee Terrace
3807 W Muhammad Ali Blvd
311 E Burnet Ave
436 34th Street
1821 W. Lee Street
4148 W. Market Street
671 S. 39th Street
1210 S. 15th Street
612 Campbellsville, Hodgenville, KY

The case is being prosecuted by Assistant United States Attorney Bryan Calhoun, and it was investigated by the Federal Bureau of Investigation.

House, Frisbie, Raheem, and Crenshaw are scheduled to appear for arraignment before the United States Magistrate Judge on July 18, 2007, at 9:15 a.m., in Louisville, Kentucky.

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