USA Properties Owner Convicted of Mortgage Fraud

After a five-day trial, the owner of USA Properties, William E. McKanry of Warrenton, Mo., was convicted of multiple conspiracy and fraud charges involving the multimillion-dollar sale of 12 local properties. Sentencing has been set for Dec. 22. According to Michael W. Reap, acting U.S. attorney for the Eastern District of Missouri, William E. McKanry, along with his son, William C. McKanry, who owned and operated USA Title, sold 12 real estate properties in Missouri through Paula Enders, a licensed mortgage broker operating through the brokerage company Foundation Mortgage. On the applications, Enders falsified that the source of the downpayments, settlement charges and subordinate finances were to be made by the buyer of these properties, when they were actually made by William E. and William C. McKanry, the sellers of the properties. All closings were made at USA Title and documents falsely showed the buyer as making cash payments that were actually made by the McKanrys. Since the closing on the 12 properties, 11 ended up in foreclosure and were resold for a loss. William C. McKanry pleaded guilty in June to related charges and is scheduled for sentencing Oct. 15. Enders pleaded guilty in December 2008 and is scheduled for sentencing Oct. 22.