Conspirator Pleads Guilty In $3 Million Mortgage Fraud

admin —  July 28, 2009 — Leave a comment

AnthonyGabePainton, Jr., 29, Kansas City, Missouri, has pleaded guilty to one count of conspiracy to commit bank fraud.

In his plea, Painton admitted that beginning in 2006 he conspired with Eric M. Rabicoff and eight other defendants to defraud federally insured financial lenders. The scheme called for Painton and others to become straw buyers who bought houses that were for sale by owners. The straw buyers obtained mortgage loans by submitting false loan applications to lenders. Falsified information including employment history, income and rent history was submitted in order for the straw buyers to obtain loans that they would not otherwise qualify to receive. The scheme also called for contract prices to be increased and for conspirators to receive money by submitting false invoices to title companies at closing. At the direction of Rabicoff, Painton set up a shell company called AJs Investment Group to receive proceeds from home sales to straw buyers. The conspirators fraudulently obtained a total of more than $3 million in mortgage loans.

As previously reported on Mortgage Fraud Blog, Painton is one of ten defendants originally indicted earlier this year.  The other defendants in the case, all of whom are awaiting trial, include Eric M. Rabicoff, Jason L. Rabicoff, Lucas R. Collier, Anthony E. Carollo, Deborah Saulmon, Bora Ly, Kong Bun Ly, Rebecca Gelwix and Richard Ngek.

Lanny D. Welch, U.S. Attorney for the state of Kansas, announced the plea. Welch commended the Internal Revenue Service, Assistant U.S. Attorney Christine Kenney and Assistant U.S. Attorney Richard Hathaway for their work on the case.

Be Sociable, Share!


Posts Google+

No Comments

Be the first to start the conversation.

Leave a Reply

Text formatting is available via select HTML.

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>