Marlin Sprouts Jr., Uniontown, Pennsylvania, was charged with a single count of conspiracy to commit mortgage fraud, which included mail fraud, wire fraud, bank fraud and money laundering.

The indictment alleges that Marlin Sprouts, between January 2005 and December 2006, acted as a mortgage borrower from two financial institutions in a scheme operated by his daughter, Tiffany Lynn Sprouts, Allegheny County, to skim portions of loan proceeds from real estate purchases.

Tiffany Sprouts operated Sprouts Mortgage and Pope Financial Services Inc. in Pleasant Hills.

Specifically, the indictment alleges that Marlin Sprouts, acting as a straw buyer for his daughter and Michael McFerron Pope of Pittsburgh, applied for mortgage loans to purchase residential real estate selected by Tiffany Sprouts and Pope in southwestern Pennsylvania in exchange for a portion of the loan proceeds.

In the scheme Tiffany Sprouts created false documents in connection with the loans and created fake documents to "inflate the straw buyers' employment and financial condition to overstate income and assets" to increase the money that could be borrowed against the properties.

The indictment also revealed that Tiffany Sprouts used real estate appraisals with inflated market values.

In January 2005, Marlin Sprouts allegedly deposited $200,000 into his personal bank account from his daughter and Tiffany Sprouts added her father's name to one of her bank accounts to make it appear he had sufficient assets to qualify for the loans and make the down payment, the indictment alleges.

Marlin Sprouts falsely reported in his applications for the loans that the home, which is an uninhabitable residence on Sugarcamp Road in Venetia, would be his primary residence, the indictment revealed. After being approved for the loan, Marlin Sprouts made some repayments to "lull" the financial institutions into believing the loans would be repaid and to avoid foreclosure.

He was approved for the $922,500 mortgage loan in March 2005.

The indictment alleges that after the Marlin Sprouts and Tiffany Sprouts then took some of the loan proceeds for their own use, including the purchase of additional properties to further the scheme.

The indictment indicates that Marlin Sprouts allegedly received three checks - each for $9,573 - in March, April and May of 2006 and deposited the $28,719 into his personal bank account.

Last September the FBI charged Tiffany Sprouts with money laundering, bank, wire and mail fraud and obstructing justice.

She pleaded guilty to the charges, according to court records.

In a plea agreement, Tiffany Sprouts agreed to provide information against her father and others allegedly involved in the scheme who have not been charged.

Court records indicate that she could face up to 25 years in prison and $500,000 in fines.

Pope faces similar charges, according to court records.

U.S. Attorney Mary Beth Buchanan also charged James Andrew Spike, 43, of 184 Republic Road, Republic with conspiracy to commit mortgage fraud in connection with the Sprouts' scheme.

The specific details of the charge against Spike remain sealed by court order, but Buchanan said Monday that Spike also acted as a straw buyer on Tiffany Sprouts behalf.

Federal agents from the U.S. Department of Treasury arrested Marlin Sprouts Friday at his home on Bailey Avenue at 6:30 a.m.

Marlin Sprouts, who was released on $10,000 unsecured bond following his arraignment in federal court in Pittsburgh, said Friday that the arrest stemmed from a real estate venture that "went sour" three or four years ago. He said Friday that he intends to clear his name.

Sprouts is the first black ever elected to serve a full term on City Council. He was sworn in to office just four weeks ago.

He did not return calls to his house Monday.

The arrest came just days after he announced that the Uniontown "deep, deep" financial trouble, with a general fund deficit of $1.2 million.

Sprouts worked for a utility company and in mills before he received an education degree from California University of Pennsylvania last year. He works as a substitute teacher in the Uniontown Area School District.

In response to the elaborate scheme purportedly operated by Tiffany Sprouts as well as several other businesses and people in the Pittsburgh area, Buchanan announced Monday the formation of a Mortgage Task Fraud Force to operate in the western district of the state.

Buchanan said Marlin Sprouts and James Spike were among 24 people charged with mortgage fraud in the Pittsburgh area.

They're accused of schemes including property flipping, submitting fraudulent documents, overstating income and assets, and serving as straw buyers.

Buchanan says the frauds in all cases include hundreds of properties and is valued at more than $13 million.

Charles A. Jenkins, special agent in charge of the IRS Criminal Investigation Division in Pittsburgh said that combating mortgage fraud has become a priority for his agency.

"Today should serve as a warning to anyone who is contemplating mortgage fraud type schemes," Jenkins said. "A law enforcement dragnet is now in place to begin the process of smothering this crime that does so much to cause financial harm and violating the law."