Forty people, including a Bay State man and woman, have been arrested and charged in connection with a major mortgage fraud scheme in Texas.
William Barry, 64, of Woburn, and Ellen Summers, 62, of Everett, have been charged with one count of conspiracy to commit mail and wire fraud. In total 40 defendants, from Texas, Florida, Massachusetts, Tennessee and Georgia, were charged with one count of conspiracy to commit mail and wire fraud. Many of the defendants are also charged with various counts of mail fraud and money laundering.
In 2004, John Barry, 41, of Windemere, Fla., owned and operated TKI Group Inc. and JAB Consulting, businesses out of Florida through which he solicited real estate agents, property finders, mortgage brokers, title company attorneys or escrow officers, property appraisers and straw buyers to facilitate the scheme.
Lending institutions were defrauded when they were convinced to approve mortgage loans for residential properties for which the property values had been fraudulently inflated. The indictment specifically lists 114 residential properties located in the Texas, according to U.S. Attorney John M. Bales’ office.
"This indictment brings to light a criminal scheme that is quite breathtaking in its scope and beyond disturbing as far as the boldness of the fraud. The agents have done a remarkable job putting together this investigation, and we look forward to presenting all of the evidence in court," said Bales. "Hopefully, others involved in mortgage fraud will be taking notice – we will be relentless in discovering, exposing and holding accountable those who have committed similar crimes."
If convicted, the defendants face up to 20 years in federal prison for the conspiracy charge, up to 20 years in federal prison for each count of mail fraud charge, and up to 10 years in federal prison for each count of money laundering.
"Mortgage fraud creates so much harm to individuals, businesses and our economy, but today’s indictment is a strong reminder how serious our system considers this criminal activity," said Erick Martinez, assistant special agent in charge, IRS-criminal investigation, Dallas field office. "Those who line their pockets with profits from these schemes should know they will not go undetected and will be held accountable."
