The executive director of the Overland, Missouri Branch of Head Start was been placed on administrative leave while agency officials investigation her conviction for fraud. In November 2004, Brenda S. Loscher pleaded guilty in Colorado in connection with allegations she defrauded her former mother-in-law of over $150,000 in 1999 in connection with a mortgage.
According to court records, Loscher purchased a house in Shawnee in July 1999 for $354,500 and stated on the application that she and her husband would make a down payment of $153,000. The lender was provided with a falsified bank statement showing a balance of over $150,000 in their accounts though the actual total account balance was negative. In order to close, Loscher obtained a loan from her mother-in-law, who obtained a 30-day loan from a bank in order to provide the funds. According to the Kansas City Star:
In a telephone interview Friday, Loscher said the fraud case stemmed from a bitter divorce and custody dispute. She said she pleaded guilty because she could not afford to go to trial.
UPDATE: The Associated Press reports that the board of directors of Head Start of Shawnee met on Monday evening and unanimously voted to terminate Loscher's employment.
"Everyone was pleased with her performance to this point," said Jim Lisson, board president. "But we have policies, and they need to be followed. And one of those policies is we don't tolerate any felonies."
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.