Randolph McAfee, 38, Springfield and Darrin Shipley, 37, Peoria, pleaded guilty in federal court Wednesday in connection with a mortgage fraud scheme that involved over 100 properties in Springfield, Decatur and Peoria, Illinois and causes losses to mortgage companies estimated at $500,000 to $800,000.
McAfee and Shipley would buy distressed properties though a company known as Central Illinois Real Estate Inc. They would advertise that they could sell properties with no money down. At times, they would represent that they owned properties they didn’t actually own and arrange to purchase the property from the actual owner after already having located a buyer. The properties were sold to buyers at inflated values. McAfee and Shipley would assist buyers in submitting falsified applications and would falsify bank officer signatures on verifications of deposit.
Copies of the plea agreements are available by following the links below - the description of the scheme and underlying conduct engaged in by the defendants is towards the ends of the documents:
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.