A federal grand jury in Austin, Texas returned a 16-count indictment against 20 Austin-area residents, charging them with participating in a fraud and money laundering scheme that defrauded federally insured financial institutions and mortgage lenders of more than $15 million.

According to the indictment, from March 27, 2001 to January 23, 2004, the defendants participated in a real estate flip-for-profit scheme where properties in Central Texas were purchased at or near market value, then sold to unqualified buyers at artificially inflated prices. The defendants collected large sums of cash while fraudulently inducing lenders to fund the real estate loans based upon materially false statements, representations and promises provided by the defendants.

Those charged include:

Firooz Deljavan, owner and operator of Austin Realtors Network, Inc;

Rosemary Rios, wife of Firooz Deljavan;

William Allan Craig, III, attorney;

Thomas Martin Henry, owner, Guardian Mortgage Services, Inc.;

Mark Douglas Kissner, Vice President, Guardian Mortgage Services, Inc.;

Stacey L. Leifheit, loan processor, Guardian Mortgage Services, Inc.;

Mohammad H. Gharbi, real estate broker;

Maryam Gharbi, daughter of Mohammad Gharbi, real estate agent;

John Ogilbee, real estate appraiser trainee;

Kato Sherman, Jr., President of KSJ & Co. and real estate appraiser;

Behrouz Deljavan, brother of Firooz Deljavan;

Donald C. King, Guardian Mortgage Services, Inc. client;

Michael R. Persinger, Guardian Mortgage Services, Inc. client;

Scott B. Ringgenberg, brother-in-law of Firooz Deljavan;

Helen Rios Ringgenberg, sister of Rosemary Rios;

Matthew C. Nagy, client of Guardian Mortgage Services, Inc.;

Ramin Masoumi, client of Guardian Mortgage Services, Inc.;

Kenneth W. Hudson, client of Guardian Mortgage Services, Inc.;

Majid Rashidi, client of Guardian Mortgage Services, Inc.; and,

Mehdi Haghshenas, client of Guardian Mortgage Services, Inc.

An indictment is a formal accusation of criminal conduct, not evidence of guilt. Defendants are presumed innocent unless and until convicted through due process of law.