Former LO, Others Plead Guilty in Fraud Scheme

Former loan officer Stefan M. Guerra of Lee's Summit, Missouri, and two others pleaded guilty in separate appearances before U.S. Chief District Judge Fernando J. Gaitan to charges related to part of a mortgage fraud scheme. From June 2005 to May 2007, buyers purchased the homes at inflated prices, obtaining mortgages by providing false information to lenders, then kept the extra proceeds. Guerra purchased one property and acted as broker on 11 others. The mortgages on the 12 properties totaled more than $5 million. Two Olathe, Kansas, men who also plead guilty in charges connected to the scheme — Leon T. Jones and Daryle A. Edwards — each purchased a Lee's Summit, Missouri, property as part of the conspiracy and made material misrepresentations upon which the lender relied in making the mortgages. In addition, from the purchase of one property — unbeknownst to the lender — Jones received $50,000. Edwards used a false Social Security number, address and employment and falsely claimed that he would occupy one property. Edwards also made false representations regarding the use of loan proceeds and received a $76,600 check payable to a construction company he owned, which was not disclosed to the mortgage lender or to the title company. Sentencing has not yet been scheduled.