Texas Residents Charged With Orchestrating Scheme

Kandace Marriott and Darrell Lynn Marriott, both of Gun Barrel City, Texas, their daughter, Kally Marriott of Dallas, and Karen Hayes of Mabank, Texas, have been charged with orchestrating a mortgage fraud scheme whereby they allegedly forged signatures and falsified home loan applications, which included creating and using numerous fraudulent documents containing statements the borrowers never made. The fraudulent documents were allegedly prepared for prospective homeowners who otherwise would not have qualified for loans backed by HUD. Evidence indicates that the defendants allegedly supervised the falsification of residential loan applications to ensure that mortgage lenders would approve the buyers' loans. The defendants allegedly falsified supporting documents and information, including the buyers' rent payment verification statements, proof of employment and information about Social Security Administration benefits, among other documents. Investigators believe the defendants targeted lower-income purchasers whose residential loans would be guaranteed by HUD. As a result, when unqualified buyers defaulted on their home loans, HUD, as guarantor of the loans, had to cover these costs, not the mortgage lenders.