Anthony “Gabe” Painton, Jr., 29, Kansas City, Missouri, has pleaded guilty to one count of conspiracy to commit bank fraud.
In his plea, Painton admitted that beginning in 2006 he conspired with Eric M. Rabicoff and eight other defendants to defraud federally insured financial lenders. The scheme called for Painton and others to become straw buyers who bought houses that were for sale by owners. The straw buyers obtained mortgage loans by submitting false loan applications to lenders. Falsified information including employment history, income and rent history was submitted in order for the straw buyers to obtain loans that they would not otherwise qualify to receive. The scheme also called for contract prices to be increased and for conspirators to receive money by submitting false invoices to title companies at closing. At the direction of Rabicoff, Painton set up a shell company called AJs Investment Group to receive proceeds from home sales to straw buyers. The conspirators fraudulently obtained a total of more than $3 million in mortgage loans.
As previously reported on Mortgage Fraud Blog, Painton is one of ten defendants originally indicted earlier this year. The other defendants in the case, all of whom are awaiting trial, include Eric M. Rabicoff, Jason L. Rabicoff, Lucas R. Collier, Anthony E. Carollo, Deborah Saulmon, Bora Ly, Kong Bun Ly, Rebecca Gelwix and Richard Ngek.
Lanny D. Welch, U.S. Attorney for the state of Kansas, announced the plea. Welch commended the Internal Revenue Service, Assistant U.S. Attorney Christine Kenney and Assistant U.S. Attorney Richard Hathaway for their work on the case.
More state and national mortgage news and mortgage press releases:
- Three indicted in $16 million Minnesota fraud ring A federal indictment was unsealed that charged three Minnesotans...
- Federal jury in Texas convicts eight in multi-million dollar mortgage fraud scam A mortgage fraud trial that began in mid-February before...
- Manhattan real estate developer sentenced to four years for role in $27 million mortgage Ponzi scheme Preet Bharara, the United States Attorney for the Southern...
- Former Homestore.com CEO to plead guilty to role in fraud scheme The former chief executive officer and chairman of the...
- Two indicted in $664,000 Maryland mortgage fraud operation A federal grand jury has indicted Dema Daiga of...
Related posts brought to you by Yet Another Related Posts Plugin.
