Mark J. Calhoun and his daughter April Calhoun were indicted by a federal grand jury in connection with a mortgage loan fraud scheme. Mark Calhoun is charged with 12 counts of wire fraud and an additional four counts of money laundering. Mark and April Calhoun are both charged with conspiracy to commit money laundering and eight counts of money laundering offenses.
According to the 25-count indictment, Mark Calhoun worked as a mortgage broker as an employee of Professional Mortgage Consultants Corp. and as the operator of New World Mortgage doing business as Silver Cross Financial Group LLC where April Calhoun was employed. The indictment alleges that from September 2004 through July 2006, Mark Calhoun prepared false and fictitious documents to insure that lenders would make mortgage loans to prospective borrowers. If the mortgage loans were successful, Mark Calhoun received a fee for his brokerage services.
The false and fictitious documents, along with the loan application containing false information, were included in each loan application packet submitted to potential lenders by Mark Calhoun and others acting under his direction. False entries were also included with loan application packets which showed that the borrower paid cash at the closing of the loan when no such funds were paid by the borrower. During the time period covered by the indictment, Mark Calhoun obtained fraudulent loans for approximately 40 borrowers totaling more than $8.5 million.
According to the indictment, Mark Calhoun and April Calhoun conspired to create fictitious creditors to which these borrowers allegedly were indebted. These fictitious creditors were actually companies under the control of Mark Calhoun and April Calhoun, who received funds for these fictitious creditors from the loan closings. The investigation is continuing and other charges are expected in the near future.
"Mortgage fraud is a serious concern throughout the United States. This case is part of our continuing efforts to bring to justice those people who are enriching themselves by committing crimes at the expense of borrowers and lenders," said U.S. Attorney for the Southern District of Mississippi, Dunn Lampton.
Rachel Dollar, the editor of Mortgage Fraud Blog is an attorney and Certified Mortgage Banker who handles litigation for lending institutions and secondary market investors.