Charles M. Davis, 34, Rogersville, Missouri, Cheryl Joan Kassebaum, 42, and her husband, Scott Allen Kassebaum, 42, both of Ozark, Missouri, Randall Lee Hall, 59, and Shanda Lynn Moore, 44, both of Springfield, Missouri, and Steven Ray Spencer, 47, Carl Junction, Missouri, were charged in a 55-count Indictment returned by a federal grand jury in Springfield.

Davis, a former mortgage broker, was the owner of Master Marketing Consultants. The Kassebaums, former mortgage brokers, were owners of Metro Consulting Group. Hall is a former mortgage broker.

The indictment alleges that Davis, Spencer and Moore were involved in a scheme to defraud home mortgage lenders from January 2006 through February 2007. Davis and Spencer solicited persons to purchase homes with the understanding that they would return a significant portion of the purchase price of the home to the purchaser afterward. Davis then prepared loan applications on behalf of the prospective purchasers that contained material false statements, and submitted those applications to lenders outside Missouri. Davis did not disclose to the lenders that a significant portion of the home’s purchase price would be returned to the purchaser. Moore’s role in the conspiracy was to verify the false income and employment information contained in the fraudulent loan applications.

This scheme involved 13 houses, according to the indictment, with home mortgage loans ranging from approximately $200,000 to $500,000. The amount of loan proceeds returned to the borrowers ranged from less than $30,000 to more than $100,000. Some of the home purchasers subsequently defaulted on the loans, and the homes have been foreclosed or are in the process of being foreclosed.

In addition to the conspiracy, Davis is charged with 13 counts of wire fraud and Spencer with six counts of wire fraud related to the transfer of loan proceeds in this scheme. Davis is also charged with 13 counts of engaging in monetary transactions in criminally derived property and Spencer with six counts of engaging in monetary transactions in criminally derived property related to the transfers of funds back to the borrowers in this scheme.

The indictment also alleges that Davis and the Kassebaums were involved in a similar mortgage fraud conspiracy from March to July 2006.

This scheme involved seven houses, according to the indictment, with home mortgage loans ranging from approximately $200,000 to more than $400,000. The amount of loan proceeds returned to the borrowers ranged from less than $30,000 to nearly $100,000. Some of the home purchasers subsequently defaulted on the loans, and the homes have been foreclosed or are in the process of being foreclosed.

In addition to the conspiracy, Davis and Cheryl Kassebaum are charged with seven counts of wire fraud and Scott Kassebaum with two counts of wire fraud related to the transfer of loan proceeds in this scheme. Davis and Cheryl Kassebaum are also charged with seven counts of engaging in monetary transactions in criminally derived property and Scott Kassebaum with two counts of engaging in monetary transactions in criminally derived property related to the transfers of funds back to the borrowers in this scheme.

The indictment alleges that Hall and Spencer were involved in a similar mortgage fraud conspiracy from November 2005 to October 2006.

This scheme involved nine houses, according to the indictment, with home mortgage loans ranging from less than $300,000 to more than $750,000. The amount of loan proceeds returned to the borrowers ranged from$15,000 to more than $141,000. Some of the home purchasers subsequently defaulted on the loans, and the homes have been foreclosed or are in the process of being foreclosed.

In addition to the conspiracy, Hall and Spencer are charged with nine counts of wire fraud related to the transfer of loan proceeds in this scheme. Hall and Spencer are also charged with three counts of engaging in monetary transactions in criminally derived property related to the transfers of funds back to the borrowers in this scheme.