The U.S. District Court accepted the guilty pleas of two more participants in the ongoing flipping prosecutions in Cincinnati, Ohio bringing the total convicted to 16 people. On Monday, Donald J. Powers, Jr., 42, attorney who ran Premier Land Title and David M. Green, 48, real estate investor, entered pleas.
According to Court documents, the participants in this scheme purchased dilapidated homes in Hamilton and Butler Counties. They would recruit a straw buyer and support a loan application with false income and employment information and inflated appraisals. The property was flipped to the straw buyers – sometimes for more than 4 times what the property was actually worth.
Powers pleaded guilty to bank fraud and tax evasion. According to his plea agreement, Powers served as the owner of a title company that closed many of the loans and also acted as a seller of several flipped properties. He knew of the inflated appraisals and that down payments were not contributed by the borrowers.
Green pleaded guilty to conspiracy, bank fraud and tax evasion. According to his plea agreement, Green acted as the seller of many flipped properties. He knew of the inflated appraisals and that down payments were not contributed by the borrowers. Green also failed to report income paid to himself and his company, DMG Properties, in connection with the scheme.
Prior articles and documents:
April 1, 2005 - Court Accepts Guilty Plea of Richard Fraser
February 2, 2005 - 3 More Indictments and Plea Agreements Entered in Ohio
January 17, 2005 - Pleas In Cincinnati Mortgage Fraud Accepted
January 11, 2005 - Two More Guilty Pleas In Cincinnati Ohio Flipping Scheme
December 20, 2004 - Three More Guilty Pleas in Cincinnati Fraud
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.