Ex-investor sentenced in Indiana mortgage fraud

A former real estate investor who pleaded guilty to federal charges that he set up straw deals to obtain inflated mortgages
on more than 100 Indianapolis houses has been sentenced to seven years in prison.

Robert A. Penn, 44, of Naples,
Fla. also was ordered Monday to pay more than $11 million in restitution. He earlier pleaded guilty to
charges of wire fraud and admitted to money-laundering conspiracy.

Two co-defendants also
received prison time. Tamara E. Scott, 50, of Indianapolis, was sentenced to 24 months for conspiracy to commit wire fraud
and money laundering, and Stephen Scott Brown, 37, of Indianapolis, was sentenced to 37 months for conspiracy to commit wire
fraud and money laundering. Scott was ordered to pay $2.8 million in restitution; Brown was ordered to pay $11.1 million.

The former Indianapolis residents were indicted in July on charges that from 2003 to 2005 they bought many of the
homes for $120,000. Those were later seized by lenders and resold at sheriff’s sales for $3,500 to $26,000.

A total
of nine individuals have been charged in these schemes. Jerry Jaquess and Timothy Brown were previously sentenced to 30 months
and 37 months  in prison, respectively, and the remaining cases are currently pending before Circuit Judge David Hamilton.

Please enable JavaScript to view this content.

Story Continues Below

Editor's note: IBJ is now using a new comment system. Your Disqus account will no longer work on the IBJ site. Instead, you can leave a comment on stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Past comments are not currently showing up on stories, but they will be added in the coming weeks. Please note our updated comment policy that will govern how comments are moderated.