Ohio man pleads guilty in mortgage scam

by Ryan Smith27 Jan 2014
An Ohio man has pleaded guilty to money laundering in connection with a multimillion-dollar mortgage scam.

Richard E. Nobles, 40, pleaded guilty to the charge – one of four against him – in U.S. District Court in Columbus, Ohio, according to the Columbus Dispatch. Prosecutors say he bilked lenders out of $1.8 million in the purchase of nine homes between 2006 and 2008.

Nobles, a real estate agent, sold the homes at inflated prices, lying on purchasers’ loan applications to get larger-than-necessary mortgage loans. When the buyers inevitably couldn’t meet the payments, the homes went into foreclosure, the Dispatch reported.

Nobles managed the scam through several companies, according to the Dispatch. He also took kickbacks and paid kickbacks to brokers through lenders provided for the home purchases, the Dispatch reported.

Nobles was also charged with bank fraud, conspiracy to commit bank fraud, and conspiracy to launder money. Those charges were dropped in exchange for his guilty plea to the money laundering charge. He faces up to 10 years in prison and a fine of up to $250,000 plus restitution.

A sentencing date has not been set, according to the Dispatch.
 

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