Randolph McAfee, 38, Springfield, Illinois and Darrin Shipley, 38, Peoria Illinois were each sentenced to 20 months in federal prison. The pair were also ordered to pay $1.13 million in restitution.
In December 2004, McAfee and Shipley each plead guilty to one count of bank fraud in connection with a mortgage fraud scheme that involved over 100 properties in Springfield, Decatur and Peoria, Illinois and caused losses to mortgage companies that were originally estimated at $500,000 to $800,000. However, according to media reports, shortly before sentencing, Ocwen Federal Bank, the victim suffering the largest losses, reported a total loss of $915,000 â€“ affecting the length of the sentence as well as the amount of the restitution. The other lender victims were Bankers Trust, New Century Mortgage and Nashville City Warehouse.
According to court documents, 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 didnâ€™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 to submit falsified applications and also falsified bank officer signatures on verifications of deposit.