Three Kansas City metropolitan men pleaded guilty in federal court to devising and executing a scheme to defraud home-buyers and mortgage lenders of millions of dollars.

Anthony Long, 34, Blue Springs, Missouri, his father, Carl Edward Long, 55, Oak Grove, Missouri and Mitchell David Medlin, 43, Lee’s Summit, Missouri pleaded guilty to a federal information that alleges a mortgage appraisal and down payment scheme and with money laundering.

According to the U.S. Attorney, Anthony Long and Carl Long (dbaCommunity HomeBanc, Community HomeBanc of America and First Equity Banc) developed the scheme to defraud both home buyers and mortgage lenders. Medlin, who was engaged in residential and light commercial construction and did business as M&R Construction, LLC, in Lee’s Summit, Missouri, later joined the Longs in executing the scheme.

The defendants would induce individuals to purchase duplexes at Westwind Properties in Lee’s Summit, Missouri, promising no down payments, expenses or obligations, including no closing costs. The defendants obtained inflated appraisals, provided false lease and rental information in connection with the appraisals and caused false listings and sales to be entered into the MLS database.

The defendants falsely indicated to lending institutions that the buyers were paying down payments and closing costs. These amounts would be absorbed in larger loans and higher sales prices. Once the borrowers were approved to purchase the homes at the higher appraised value, the co-defendants received payment for the purchased property based on a fraudulently appraised value. In some cases, buyers were paying up to 68 percent higher prices than homes were actually worth.

The scheme continued into Westvale Properties in Lee’s Summit and eventually Viking

Place Properties in Independence, Missouri. Properties involved were located in Independence, Lee’s Summit, Raytown and Kansas City, Missouri

Carl Long’s guilty plea involved 15 fraudulent loans totaling approximately $2,008,860. Anthony Long and Medlin plead guilty in connection with 120 fraudulent loans totaling approximately $17,947,070.