Missouri Man Pleads Guilty to Mortgage Fraud in Kansas

admin —  June 11, 2009 — Leave a comment

Ryan Keith Miller, 35, Lee’s Summit, Missouri, has pleaded guilty to mortgage fraud charges, according to U.S. Attorney Lanny Welch.  Miller was originally charged in a 5-count Information in March of 2009.

Miller pleaded guilty in U.S. District Court in Kansas City, Kansas, to one count of conspiracy to commit mortgage fraud, one count of wire fraud, one count of money laundering, and one count of aggravated identity theft. In his plea, Miller admitted he conspired with co-defendants Wildor Washington, Jr., David Kostelec, Amanda Childs, Gregory Stevenson and others to fraudulently obtain mortgage loans. The conspirators submitted fraudulent loan applications and property appraisals to lenders to obtain money and then transferred the proceeds to bank accounts they controlled for their own use. Among the business entities used by the conspirators was Approved Mortgage, The Mortgage Connection, Atlantic Mortgage, TERM Appraisers, Apex Appraisals, Midwest Appraisals, Miller Appraisals, Pinpoint Appraisals, Summit Appraisals, Alexandra Enterprises, and Ryan Miller Appraisals, LLC.

The conspirators obtained loans for purchasing and refinancing properties by submitting false and fraudulent loan applications that contained false statements of borrowers’ incomes and employment, false lien information, false statements of occupancy, false sales contracts and false notarization of loan documents. They submitted appraisal reports containing inflated property values and forged signatures of licensed appraisers.

In his plea, Miller admitted that on Jan. 11, 2002, he and other conspirators formed TERM Investment Group LLC, also known as Term Appraisers. Appraisals prepared by TERM contained false and fraudulent information that was submitted to lenders. On Aug. 15, 2002, Miller aided co-defendant Wildor Washington, Jr., and others in preparing a false and fraudulent appraisal on a property in the 12400 block of South Acuff Court in Olathe, Kansas On Feb. 4 and 5, 2003, Miller aided Washington and others in submitting a false payoff statement and a false appraisal on a property in the 11100 block of East 78th Street in Kansas City, Missouri. On Feb. 17, 2005, Miller prepared a false appraisal on a property in the 3800 block of Baltimore in Kansas City, Missouri. On Feb. 17, 2005, he prepared a false appraisal on a property in the 2300 block of Benton Boulevard in Kansas City, Missouri.

Miller also participated in fraudulent activities causing wire transfers to be made of proceeds on a loan for a house in the 1400 block of North 22nd in Kansas City, Kansas As part of the transaction he unlawfully made use of the identity of a licensed appraiser.

Sentencing is set for Sept. 14, 2009. He faces a maximum penalty of 5 years and a fine up to $250,000 on the conspiracy charge, 20 years and a fine up to $250,000 on the wire fraud charge, 10 years and a fine up to $250,000 on the money laundering charge, and a mandatory 2 years consecutive to other sentences and a fine up to $250,000 on the identity theft charge.

Welch commended the U.S. Postal Service, the Internal Revenue Service, the Johnson County Sheriff’s Department, U.S. Department of Housing and Urban Development – Office of Inspector General, the U.S. Secret Service, and Assistant U.S. Attorney Marietta Parker for their work on the case.

In a related case, Alexandra Davidson, 57, was sentenced to 4 months incarceration and restitution of $369,371. In February 2009, Davidson pleaded guilty to one count of conspiracy to commit wire fraud and money laundering, and one one count of wire fraud. In her plea, she admitted conspiring with co-defendants David Kostelec, Joseph Balano and Craig Long to fraudulently obtain mortgage loans. She admitted that she and others were involved in fraudulent acts related to loans on properties in the 2000 block of Cyprus in Kansas City, Missouri., the 3900 block of Harrison in Kansas City, Missouri., the 14100 block of Windsor Street in Leawood, Kansas, and the 1400 block of N. 22nd in Kansas City, Kansas.

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