Four Mississippi individuals were indicted this week for charges related to a more than $3 million mortgage loan fraud scheme, federal officials said.
Michael Lance Persac, Jason Ellis, Carroll F. Ellis Jr., and Toby Wayne Goss were charged with conspiracy to commit wire fraud and money laundering in connection to a loan fraud scheme, according to U.S. Attorney Dunn Lampton.
The scheme allegedly involved false loan documents, such as borrower’s income verification, deposit verification and false entries in loan applications.
According to the 47-count indictment, Persac worked as a mortgage broker for Mortgage Stop, and Jason Ellis worked for Mortgage Stop and under the business name of Professional Mortgage Consultants Corp. Carroll F. Ellis Jr., was in the business of buying and selling houses for a profit.
During the time period covered by the indictment, Persac, Jason Ellis and Carroll F. Ellis Jr. allegedly obtained more than $3 million in fraudulent loans for about 65 borrowers, according to documents. The indictment charges that from June 1999 through August 2005, Persac, Jason Ellis and Carroll F. Ellis Jr. conspired to prepare false and fictitious documents to insure that lenders would make mortgage loans to prospective borrowers.
The false documents included such things as false verification of deposit documents, false verification of rent documents, and false documents verifying a borrower’s income, according to officials. False entries were also included with loan application packets, which showed that the borrower paid cash at the closing of the loan when no such funds were paid by the borrower.
The indictment also charges that Persac and Jason Ellis conspired to create fictitious creditors to which borrowers allegedly were indebted, and received checks at the loan closings for these fictitious creditors, the proceeds of which would be converted to their own use.
In a separate, but related, 20-count indictment, Goss also is charged with conspiring with others to match up prospective borrowers with mortgage lenders by preparing the loan applications and supporting documents for each borrower and submitting the completed loan application package to a lender, all for a fee. Goss worked as a mortgage broker doing business as Consolidated Mortgage Corp. and/or Mississippi Mortgage.
The indictment alleges that Goss and others created false and fictitious documents to ensure that the mortgage loans would be granted to borrowers, which allowed Goss to convert some of the proceeds for his own use and benefit. According to the indictment, Goss and others successfully obtained loans for approximately 35 borrowers totaling over $2 million.
Authorities have be been investigating the scheme for more than two years. Additional charges are expected in the near future, the U.S. Attorney’s office said.
***
Send tips or a Letter to the Editor to jessica@inman.com or call (510) 658-9252, ext. 133.
