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StumbleGrand jury indicts 5 on mortgage fraud charges
Wednesday, May 26, 2010 | 2:34 p.m.
A federal grand jury in Las Vegas indicted five people today on mortgage fraud charges, Nevada's U.S. Attorney Daniel Bogden announced.
Lloyd H. Gardley, 56, and Candis Gardley, 53, of Chandler, Ariz.; Suzanne McAllister, 32, of Las Vegas; Arcell Mitchell, Jr., 31, of Fort Riley, Kan.; and Sharon Wagner, 61, of Sun City West, Ariz., were charged with conspiracy to commit bank fraud, mail fraud, and wire fraud, six counts of bank fraud, and criminal forfeiture.
Arrest warrants were issued for the Gardleys and Mitchell. McAllister and Wagner were summoned, and are scheduled for an initial appearance before a federal magistrate judge in Las Vegas on June 4.
Lloyd Gardley was president, director, secretary and resident agent of Prolific Management, Inc., a Nevada corporation, and registered agent of Avante Conquest, LLC, a Nevada limited liability company. Lloyd and Candis Gardley were managing members of Excel Consulting, LLC, a Nevada limited liability company. Candis Gardley was president and resident agent of Oakhill Management, Inc., a Nevada corporation. McAllister was an assistant escrow officer and notary at Lawyers Title. Mitchell worked as a loan officer for Valley Mortgage Group. Wagner was a Realtor for Coldwell Banker Wardley.
The indictment alleges that from 2005 to April 2007, the defendants devised a mortgage fraud scheme that involved the use of straw buyers and the submission of false information to financial institutions in order to obtain mortgage loans. The defendants solicited persons to act as straw buyers to purchase real estate, and in some instances, the defendants had the straw buyers purchase multiple houses at or about the same time. The defendants caused to be submitted to the financial institutions mortgage loan applications containing fraudulent information about the straw buyers’ employment, income, assets, liabilities, rental history, value of the property, intent to occupy the homes, Social Security number, and source of earnest money deposits and costs.
The indictment lists 28 real property sales transactions involving 21 homes sold in Las Vegas between Aug. 25, 2005, and April 18, 2007. Seven of the homes were “flipped” or sold twice within short periods of time. A majority of the homes sold for more than $700,000, and the total value of the mortgages for the 28 transactions was $18.9 million.
If convicted, the defendants face up to 30 years in prison and a $1 million fine on each count, and may be required to forfeit up to $4.2 million.
This investigation is being led by the U.S. Postal Inspection Service and other agencies of the Southern Nevada Mortgage Fraud Task Force, including the FBI, Office of the Inspector General for the Department of Housing and Urban Development, the U.S. Secret Service, Metro Police, and Office of the Inspector General for the Social Security Administration. The case is being prosecuted by Assistant U.S. Attorney Brian Pugh.
Persons who have information concerning potential mortgage fraud may contact the Southern Nevada Mortgage Fraud Hotline at 584-5555.
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Why no indictment of Sen. Chris Dodd. The man took a sweetheart loan from Countrywide with the help of Raines, the CEO of Fannie Mae. There is more fraud at the top than at the street level.
Don't forget Barney Frank D -Ma.
Countrywide did pretty well off the loan to Dodd, though, right? I've been locked in a cave for the past four years. Why won't my WAMU debit card work???
U.S. Senator Chris Dodd
448 Russell Building | Washington D.C., 20510
Tel: (202) 224-2823 | Fax: (202) 224-1083
Rep. Barney Frank
2252 Rayburn Building
Washington, DC 20515
tel: (202) 225-5931
fax: (202) 225-0182
I think these two guys know something about the mortgage meltdown. I'd put them under subpoena.
Why is everyone always picking on Bwany Fwank?
Good lesson, next time some guy in black trenchcoat, whispers, "hey buddy, wanna buy a house?" I will figure it's just some R.E. agent doing night work. Isn't there enough to me made, buying foreclosures from your peers? I think I know how they got caught; everybody else in Office was on Prozac, didn't notice when the copy machine was working late.. Also, they stood out, drinking coffee at Starbucks, while the rest of the office fared on the dark wet grinds of a failing market. Rumors people!That's all this is. Grand Jury indicts 5 on fraud; slow news day!!! See you at Starbucks. I can't even get a loan to fix my car. Wait, the call just came in, I won the publishing clearinghouse sweepstakes. No more sweeping the brown and tan desert sand off my garage; I can hire an illegal to do that, now.
I want the movie rights, to "The Dirty 5" Who wants to be the sheriff?
except in the movie, they Don't get caught, or caught with their Starbucks open.
Hey, buddy, I am over here, on Straw avenue. I wanna buy a Mcmansion, a maserati, some windex, water if you got any.
bbtbrain....That was the best joke I've heard all day. I still can't stop laughing.....it was suppose to be a joke, right ?
These criminal acts are too heinous to say what would be the appropriate punishment. Add another million or so similar criminal actions by another million crooks, and then hand the handcuffs to Frank the crook, the Fannie CEO crook, the Freddie crook, and Ted Kennedy just to make it complete.
What's the problem? Just laizze-fairecapitalism at work. Sarah Palin would be proud.