Roger Pepples, 59; John Todd Killinger, 35; and Rodger Randall, 51, waived grand jury indictment and pleaded guilty in U.S. District Court to charges of conspiracy and knowingly signing and submitting false statements on a mortgage loan application. Killinger and Pepples also pleaded guilty to charges of income tax evasion.

Prosecutors contend that Pepples primarily acted as a seller of several flipped properties from January 2000 through July 2003. These deals typically involved an inflated appraisal and sham down payment. He received payoffs directly or through two companies he controlled, Timeco Investments and Vogel Properties.

Killinger acted both as a buyer and seller of flipped properties. For example, in August 2001, Killinger bought two homes in East Price Hill for $95,000 apiece that had been purchased by investor David Lockwood less than one month earlier for $40,000 each. The loan documents referenced falsified down payments. Shell companies controlled by Killinger were Pioneer Construction, Maverick Investments Inc. and Crown Home Development Inc.