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Local man gets 37 months in mortgage-fraud scheme

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A federal judge has ordered an Indianapolis man to serve 37 months in prison and pay $1.7 million in restitution for his role in a massive mortgage fraud scheme.

Timothy A. Brown, 45, pleaded guilty to one count of wire fraud and one count of money laundering. As part of the plea deal, he accepted responsibility for 29 fraudulent loans totaling $4.5 million.

The U.S. Attorney’s Office for the Southern District of Indiana said the scheme involved 149 fraudulent loan transactions totaling $19.7 million between 2003 and 2005.

Brown is the second defendant so far to receive prison time.  In September, Charter Homes Inc. founder Jerry J. Jaquess received 30 months in prison. Seven other defendants still have cases pending in front of Chief Judge David F. Hamilton.

The charges followed an investigation by special agents of the IRS Criminal Investigation Division, the U.S. Attorney’s Office and the FBI.

Scheme participants bought homes in Windsor Village near Arlington Avenue and 21st Street in Indianapolis for $50,000 each, the U.S. Attorney’s Office said. Then, with the help of inflated appraisals, they recruited investors to take out $96,000 loans to purchase the homes for $120,000 each.

The buyers were recruited members of an investment club who were paid $4,000 for each home in exchange for using their credit. Most of the investors were in Virginia and never saw the homes.

No payments were made on the mortgages and the lenders lost the entire loan amounts, the U.S. Attorney’s Office said. Many of the duplexes were later resold for between $3,500 and $15,000.

Jaquess and Charter Homes were the subject of an IBJ investigative story last year.

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  1. Those of you yelling to deport them all should at least understand that the law allows minors (if not from a bordering country) to argue for asylum. If you don't like the law, you can petition Congress to change it. But you can't blindly scream that they all need to be deported now, unless you want your government to just decide which laws to follow and which to ignore.

  2. 52,000 children in a country with a population of nearly 300 million is decimal dust or a nano-amount of people that can be easily absorbed. In addition, the flow of children from central American countries is decreasing. BL - the country can easily absorb these children while at the same time trying to discourage more children from coming. There is tension between economic concerns and the values of Judeo-Christian believers. But, I cannot see how the economic argument can stand up against the values of the believers, which most people in this country espouse (but perhaps don't practice). The Governor, who is an alleged religious man and a family man, seems to favor the economic argument; I do not see how his position is tenable under the circumstances. Yes, this is a complicated situation made worse by politics but....these are helpless children without parents and many want to simply "ship" them back to who knows where. Where are our Hoosier hearts? I thought the term Hoosier was synonymous with hospitable.

  3. Illegal aliens. Not undocumented workers (too young anyway). I note that this article never uses the word illegal and calls them immigrants. Being married to a naturalized citizen, these people are criminals and need to be deported as soon as humanly possible. The border needs to be closed NOW.

  4. Send them back NOW.

  5. deport now

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