Plea Agreements Detail Flipping Schemes

Indictments and Guilty Pleas Available on Mortgage Fraud Blog:

Indictment - Steven Carey - December 15, 2004

Guilty Plea Agreement - Steven Carey - December 15, 2004

Indictment - Philip Jasper - December 15, 2004

Guilty Plea Agreement - Philip Jasper - December 15, 2004

Steven Carey, owner of a mortgage company known as Seven Hills Financial Group, waived grand jury indictment and plead guilty bank fraud, knowingly signing and submitting a false statement on a mortgage loan application and filing a false income tax return. His plea agreement outlines a flipping scheme in Cincinatti, Ohio where properties were purchased at low prices and flipped to unqualified borrowers at greatly inflated prices based on falsified information and documentation. Carey acted as a seller and a mortgage broker. He would purchase properties and put them in his name or the name of his shell company, First Ohio Capital. In selling the properties, he knew the appraisals were inflated and he signed HUD-1's that falsely indicted borrower brought funds to closing when, in fact, he or one of his co-conspirators contributed the down payment funds. Borrowers would also receive kick-backs after close. Carey also manufactured verification documentation for submission to lenders. The plea agreement details the transactions on two separate properties and indicates that his participation caused losses of approximately $1.5 million to lenders.

Philip Jasper also waived grand jury indictment and pled guilty to bank fraud and knowingly signing and submitting a false statement on a mortgage loan application. Jasper' plea agreement indicates that he worked as a "salesperson"in the flipping scheme. He would act as the purchaser of the properties prior to or after the flip transaction. He knew that HUD-1's he signed contained misrepresentations concerning the source of funds and knew that appraisals were inflated. The plea agreement details transactions on two properties and indicates that his participation caused losses of approximately $330K to lenders.