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.