Willie Collins and Freddie Johnson separately pleaded guilty (Collins Plea, Johnson Plea) to multiple counts of aggravated identity theft and mail fraud in connection with obtaining fraudulent mortgage loans on a Cherokee Triangle residence. Two other defendants, James Hardison and Marilyn Rainey, were also charged and are scheduled to stand trial in U.S. District Court.

The charges to which Johnson and Collins pleaded guilty relate to their involvement in the stealing of the identity of the owner of 2411 Longest Avenue, Louisville, Kentucky, to facilitate two fraudulent loan closings on the property. They, along with Hardison and Rainey, were able to effectuate their scheme, by also stealing the identity of a Southern Indiana man so that Hardison could pose as a buyer at the closing, while Rainey posed as the actual owner of the property. Using these stolen identities, Hardison, Rainey, and Collins participated in two separate closings on this same property. At the first closing they were able to obtain approximately $290,000 in loan proceeds. They attempted to obtain a second closing and loan on the property in the same amount, but were arrested by the Louisville Metropolitan Police Department before they could withdraw these funds. Johnson’s role in the scheme was to recruit Rainey to pose as the buyer of the property and to recruit Collins to open a bank account in Louisville so that they could cash the check that they obtained from the closing.

The defendants were able to obtain $303,704.57 from the first closing on November 21, 2006, and $294,567.22 from the second closing n November 27, 2006. The bank, however, put a hold on the check from the second closing. When the defendants attempted to withdraw the proceeds from this second check the Louisville Metropolitan Police Department was able to arrest Johnson and Collins. Shortly after their arrest, the LMPD and the United States Secret Service were able to identify and then arrest Johnson and Hardison as the other participants in the scheme.

In addition to his involvement in the two loans for 2411 Longest Avenue, Hardison is also charged in an additional count for his rule in attempting to fraudulently obtained a $403,538.10 loan from Countrywide Mortgage. Hardison is charged with stealing the identity of an individual in order to obtained this loan from Countrywide Home Loans.