California Man Pleads Guilty, Sentencing Pending

Another defendant in the fraud case involving $12.6 million mortgage fraud scheme that involved 25 upscale residential properties in Lee's Summit and Raymore, Mo., has pleaded guilty in federal court. According to Matt J. Whitworth, acting U.S. attorney for the Western District of Missouri, Jerome Shade Howard of Anaheim, Calif., pleaded guilty before U.S. Chief District Judge Fernando J. Gaitan to his role in a scheme to buy new homes built by Jerry R. Emerick at inflated prices, obtaining mortgage loans for more than the actual sale price by providing false information to mortgage lenders, then keeping the extra proceeds. Howard admitted that he received more than $900,000 in illegal kickbacks as part of nearly $8.5 million in fraudulent mortgage loans. Howard is among 12 defendants who have pleaded guilty to the scheme. Sentencing for Howard will be scheduled after the U.S. Probation Office completes a pre-sentence investigation. Emerick pleaded guilty in April to conspiracy to commit mortgage fraud and wire fraud and to transfer funds obtained by fraud across state lines.