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Archive for Sunday, October 23, 2011

Woman pleads guilty to selling false Social Security numbers

October 23, 2011

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— A California woman has pleaded guilty to her role in a credit history fraud scheme in the first federal prosecution of people who sold stolen Social Security numbers for the purpose of improving the buyers’ credit ratings.

Karen Washam-Hawkins, 49, of Carson, Calif., pleaded guilty Wednesday to conspiracy to commit wire fraud and interstate transportation of money obtained by fraud. A second defendant, William Bartlett, 40, of Tampa, Fla., pleaded guilty in late March to his role in the conspiracy.

Prosecutors said the credit history manipulation allowed three men to purchase six homes for nearly $3 million in a suburban Kansas City housing development that was tainted by illegal kickbacks, inflated prices and other types of mortgage fraud.

In all, 19 people have pleaded guilty in a $12.6 million scheme involving 25 upscale homes in Lee’s Summit and Raymore that left banks holding bad loans and caused property values to nosedive.

Three of those people — Ronald Brown Jr. of Gladstone, Daryle Edwards of Overland Park, Kan., and Shade Jerome Howard of Anaheim, Calif. — admitted purchasing false Social Security numbers to enhance their creditworthiness to obtain mortgages. Prosecutors said Brown bought three homes totaling about $1.3 million, Howard bought two properties for $1.2 million and Edwards purchased one property for $418,500.

Conspirators in the mortgage scheme admitted engineering the sale and purchase of new homes at inflated prices with fraudulently obtained mortgages. Prosecutors said the deals were structured so the buyers would receive the difference between the actual sales prices and the inflated prices.

Buyers received about $100,000 on each home, prosecutors said, and former Lee’s Summit real estate agent Angela R. Clark pulled in more than $400,000 in commissions and other payments because of the inflated prices.

Clark, who orchestrated the scheme, has been sentenced to 20 months behind bars and must pay more than $5.6 million in restitution. She sold the homes for Raymore builder Jerry R. Emerick at inflated prices and helped buyers get mortgages far exceeding the value of the homes.

Emerick was sentenced to 2 1/2 years in prison and ordered to pay restitution of more than $5 million after pleading guilty to conspiracy to commit mortgage fraud and wire fraud, and to transferring funds obtained by fraud across state lines.

In her guilty plea, Washam-Hawkins admitted obtaining the false Social Security numbers and helping create false credit histories attached to them. Bartlett used his businesses to provide fraudulent account and payment information to a credit bureau, building up the credit scores associated with the numbers.

Comments

kernal 3 years, 2 months ago

And, what were the real estate appraisers doing?

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