Richard Alvarez, Medina, Ohio, was sentenced to 4 years of probation, a special assessment of $100.00, and restitution in the amount of $102,452.81, for his role in a mortgage fraud scheme.
Marcus Adkins, Lorain, Ohio, was sentenced to a 4 year term of probation (during 4 year term of probation, 6 months shall be with the Location Monitoring System) as to Count 11, a special assessment of $100.00, and restitution in the amount of $85,011.66.
On April 29, 2008, a federal grand jury in Cleveland, Ohio, returned a fourteen count indictment against Alvarez and Adkins. The Indictment charged Alvarez with one count of conspiracy to commit wire fraud and seven additional counts of wire fraud. Marcus Adkins was charged with one count of conspiracy to commit wire fraud and six additional counts of wire fraud. Alvarez pleaded guilty to count 6. Adkins pleaded guilty to count 11.
The indictment alleges that during the period from about February 2005 through June 2006, Richard Alvarez and Marcus Adkins partnered in approximately thirteen (13) real estate transactions involving properties located in and around Cleveland and Toledo, Ohio.
The indictment further alleges that as part of their agreement and conspiracy defendants purchased these properties from the sellers at market value, but inflated the purchase price for each of the properties on the loan applications to the mortgage companies. The indictment alleges that the defendants claimed the additional money was for repairs and/or improvements to the properties, but these repairs were never completed. In addition to inflating the purchase prices and fraudulently retaining the excess money, the indictment also alleges that defendants Alvarez and Adkins further falsified the mortgage applications by fraudulently stating the source of the down payment funds and closing costs, submitting false appraisals which inflated the true value of the properties, claiming false second mortgages by which the defendants obtained additional funds from the properties, false leases and rental agreements which concealed their true income, and falsely verifying of existing of deposited funds had not actually been deposited in escrow. The indictment alleges that Adkins and Alvarez did all of this in order to deceive and defraud mortgage lenders, title companies and others.
This case was prosecuted by Assistant United States Attorneys Mark S. Bennett and John D. Sammon, following an investigation by the Cleveland offices of the Federal Bureau of Investigation, and the U.S. Department of Housing and Urban Development.
William J. Edwards, Acting United States Attorney for the Northern District of Ohio, announced the indictment.