Ohio LO Pleads Guilty to Fraud Scheme on 210 Properties

Kamal J. Gregory of Centerville, Ohio, pleaded guilty in U.S. District Court to charges on an extensive mortgage fraud scheme affecting 210 residential properties, of which 205 are located in Montgomery County, Ohio. The scheme affected 63 investors and led to foreclosure against owners of more than 90% of the properties. Gregory admitted that, while working as a loan officer under between March 2002 and June 2008, he along with 11 other co-conspirators prepared and submitted mortgage loan application packages to lending institutions on behalf of purchasers/investors. The applications made fraudulent claims involving the income of the borrowers and values of the properties involved, most of which were dilapidated. The application packages artificially inflated the properties¹ worth above legitimate fair-market values. Gregory and his co-conspirators created the fraudulent loans as a way of making money for their own benefit. He admitted to participating in 46 separate fraudulent real estate closings. The net fraudulent loan amounts associated with these closings exceeded $4.2 million. Two of Gregory¹s co-conspirators, Julian M. Hickman and Robert Mitchell, have previously pleaded guilty to related charges and await sentencing.