The Youngstown Mortgage Fraud Task Force and the U.S. Attorney for the Northern District of Ohio are investigating a $7.5 million mortgage fraud scheme involving 48 properties in Mahoning and Trumbull counties.
The U.S. Attorney's office indicted seven people, five of whom are from the Valley, Tuesday in connection with the scheme.
The indictment charges one count of conspiracy to commit wire fraud and 48 counts of wire fraud, which is one count for each property.
The indictment alleges that Romero Minor, 51, of Georgia, was the person who spearheaded the scheme along with Wendell Kerr, 62, of Mississippi. They had local loan officers, appraisers and title companies help them commit the mortgage fraud.
The indictment alleges that Minor operated a religious organization and investment group known as BFB Investments. Between July 2003 and January 2006, state court documents, Minor recruited investors to purchase several properties, telling them he wanted to help those in the community with bad credit who could not buy homes themselves.
The investors were told that after they bought the homes, Minor would enter one-year rent-to-own agreements with tenants so the tenants could improve their credit scores. After a year, he told them, the tenants would buy the homes.
"(He said that) during that year period he would make the mortgage payment, he would keep the houses up, he would pay the taxes, all of that," said Assistant U.S. Attorney Mark Bennett. "In reality, Minor did none of that. He didn't pay the mortgages, but for a limited instance, he did not keep the houses up, he did not mow the lawns, etc., etc."
Minor instead conspired with loan officers to submit fraudulent mortgage loan applications in the names of the investors to secure loans on the homes. Minor then had the properties appraised and financed at values far beyond what they were worth, and he received and pocketed thousands of dollars at closing from the mortgage proceeds.
"He just takes the extra money and walks away from the properties," said Bennett.
The scheme involved over $7.5 million in mortgage loans, and the victim mortgage companies lost over $2 million as a result, filings state. The homes involved are now in foreclosure.
Sixteen of the properties were in Warren along with one each in Austintown, Lowellville, Campbell and Struthers and 28 in Youngstown. Loans ranged from $45,000 to $210,000 for each home.
Individuals indicted include:
- Boardman Title Attorney William Helbley, 57, of Poland
- Appriaser Timothy Corey, 49, of Youngstown
- Loan Officer Robert Lunsford, 54, of Hubbard
- Appraiser Damon Petrich, 39, of Boardman
- Boardman Title Attorney Michael Wagner, 54, of Canfield
