Chauncey Joseph Calvert, 34, Kansas City, Missouri, a former employee of Ameriquest Mortgage, pleaded guilty in connection with his role in a conspiracy to defraud Ameriquest and victim investors of more than $4 million. The indictment was returned by a federal grand jury on Aug. 13, 2004.

Calvert was an account executive at Ameriquest Mortgage in Gladstone, Missouri, from August 3, 1998 through November 8, 1999. His duties included soliciting new loan applications, preparing and processing loan applications, obtaining supporting documentation and closing loans. By pleading guilty, Calvert admitted that he was involved in obtaining funding of 66 fraudulent loans between May and December 1999.

Calvert admitted that he would induce victim investors to purchase real estate by promising that a co-conspirator would obtain renters and buyers for the properties within a short period of time. The victims were led to believe that they would pay no money for the properties and have no expenses or obligations in connection with the properties but that they would be paid fees or a percentage of the profits. During the scheme, victims were told that they would receive $1,500 for each property they allowed to be purchased in their names or up to 50 percent of the profits on the eventual sale of the properties.

In carrying out the scheme, co-conspirators submitted to Ameriquest false and fraudulent loan applications signed by victims, inflated appraisals and other documentation and representations. Calvert included false information regarding the properties' condition and the victim-investors' income, assets, and credit, among other things. As a result of the conspiracy, documents were prepared for loan packages on the behalf of victim investors that contained false sales contracts, settlement statements, verifications of mortgage forms, payoff letters, income verifications, W-2 Wages and Tax Statements and verification of rent forms.

Calvert had the proceeds of the loans disbursed to a co-conspirator or companies under the control of a co-conspirator by representing that fictitious companies held the first mortgage liens on the properties. Calvert benefitted from this because he obtained fees, bonuses, commissions, kickbacks and other benefits.