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FOR IMMEDIATE RELEASE |
Dec. 4, 2007
KANSAS CITY, MO., MAN PLEADS GUILTY TO WIRE FRAUD AND CONSPIRACY
KANSAS CITY, KAN. – Terrell Ford, 33, Kansas City, Mo., pleaded guilty Monday to one count of wire fraud and one count of conspiracy in a scheme to obtain mortgage loans based on inflated property appraisals.
In his plea, Ford admitted the conspirators convinced low income borrowers to apply for home loans or refinancing by promising them loans regardless of income or credit problems. The conspirators obtained loans by submitting fraudulently inflated real estate appraisals and false financial information to lenders.
“Lenders suffered an actual loss of more than $2.5 million as a result of criminal activities in which Mr. Ford was involved,” said U.S. Attorney Eric Melgren.
In his plea, Ford admitted he participated in the scheme from Jan. 11, 2002, through Jan. 8, 2004. As part of the conspiracy:
– In January 2002 Ford and others formed an appraisal company called TERM Appraisers, which was responsible for submitting fraudulent mortgage loan applications to lenders.
– In October 2003 Ford and others opened a bank account in the name of Liberty Escrow at UMB Bank in Olathe, Kan., where they deposited money from fraudulently obtained loans.
– In September 2003, Ford allowed his electronic signature to be used on a fraudulently inflated appraisal for a loan to purchase a property in the 4000 block of College in Kansas City, Mo.
– In November 2003, Ford and others received more than $199,000 in loan proceeds obtained by means of a fraudulent appraisal of a property on East 58th in Kansas City, Mo. The money was deposited in Town & Country Bank in Leawood, Kan.
Sentencing is set for Feb. 25, 2008. He faces a maximum penalty of 20 years in federal prison and a fine up to $250,000 on the wire fraud charge, and a maximum penalty of 5 years and a fine up to $250,000 on the conspiracy charge.
Melgren commended the Internal Revenue Service - Criminal Investigation, the Johnson County Sheriff’s Department, the Overland Park Police Department and the U.S. Secret Service’s Financial Crimes Task Force and Assistant U.S. Attorney Marietta Parker for their work on the case.
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