Two defendants named in a 61 count indictment returned by an Illinois federal grand jury last week have entered guilty pleas. Another two people who were involved in the scheme but not named in the indictment also entered guilty pleas to misdemeanor charges. The indictments arose out of an alleged mortgage fraud scheme involving FHA insured loans that operated in Illinois from January 2000 to October 2003. The indictment alleges the defendants operated a criminal conspiracy making false documents, making false statements and using false identification to obtain federally insured home mortgage loans for unqualified loan applicants.

Edward Martins, 40, of Lena; Illinois plead guilty to conspiracy and making a false statement within the jurisdiction of a federal agency. In pleading guilty, Martins admitted that he was in the business of rehabilitating homes for sale along with Miskimon and Hastings. Hastings would provide the purchase money and Miskimon and Edwards would rehab the homes. The houses would then be sold to borrowers recruited by Miskimon and Edwards for inflated amounts. Fees were paid for buyer referrals and were also paid to individuals that falsely verified rental and employment histories for the borrowers. False gift letters and down payment documentation was also used in certain fiels. 46 of 54 properties sold by the trio were financed through FHA insured mortgages. Each of the counts to which Martins plead guilty carries a maximum penalty of five years. Click here to view the Martins Plea Agreement

Price Brooks, 50, Freeport; Illinois plead guilty to conspiring to defraud the United States. Brooks admitted in his plea agreement that he worked for Brooks Detail Shop, a business owned by Douglas L. Hastings. Brooks was aware that Hastings was in the real estate business with Miskimon and Martins. In order to make additional money, Brooks signed verifications of employment stating that certain people were employed at Brooks Detail Shop when they were not. He was paid $500 per verification. The plea agreement lists nine prior convictions for Brooks, including armed robbery and burglary. Click here to view the Brooks Plea Agreement

Alexandrea Ellis, 22, Freeport; Illinois, plead guilty to one misdemeanor count of making false statements to HUD, admitting in her plea that she used a stolen identity to obtain an FHA loan to purchase a house.

Brian Fox, 35, Freeport, Illinois, also plead guilty to one misdemeanor count of making false statements to HUD, admitting in his plea that he provided false rental history verification for a purchaser.

Neither Ellis nor Fox was named in the grand jury indictment.