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Home > Blogs > Dayton Courts: Legal and crime news > Archives > 2010 > January > 22
Friday, January 22, 2010
Mortgage fraud scheme leads to prison sentences for three, probation for another
DAYTON — The last four participants in an extensive mortgage fraud scheme, which affected 205 residential properties across Montgomery County and defrauded 33 mortgage lending institutions of more than $7 million, were sentenced Friday, Jan. 22, with three receiving prison terms.
U.S. District Court Judge Michael R. Barrett sentenced:
— Kenneth O. McGee, 50, to 32 months in prison and fined him $12,500. — Robert Mitchell, 43, of Vandalia, to 32 months in prison and fined him $12,500. — Kamal J. Gregory, 36, Centerville, to 10 months in prison and fined him $12,500. — Edward McGee, 76, the father of Kenneth O. McGee, to three years probation and fined fined him $140,000.
Mitchell pleaded guilty on March 11, to one count of conspiracy to commit mail fraud, wire fraud and money laundering, and one count of conspiracy to commit money laundering. Gregory pleaded guilty April 14 to the same charges.
The McGees pleaded guilty May 11, with Kenneth McGee pleading to the same charges as the other two. Edward McGee pleaded guilty to one count of conspiracy to commit money laundering.
The cases stem from a 13-count indictment involving six defendants which was originally handed down on June 25, 2008. The defendants were part of a conspiracy that operated and controlled various Dayton-based real estate mortgage and title insurance related businesses and corporations.
The defendants manipulated real estate documents to fraudulently obtain excess mortgage loan proceeds, said Carter M. Stewart, U.S. Attorney for the Southern District of Ohio.
Two others involved in the scheme were previously sentenced. Julian M. Hickman, 32, formerly of Centerville and now living in East Cleveland, pleaded guilty Dec. 15, 2008 to conspiracy and tax crimes. Hickman was sentenced Dec. 10 to 33 months in prison.
Jessica A. Zbacnik, 42, of Monroe, pleaded guilty July 29 to one count of conspiracy to commit money laundering and one count of conspiracy to commit mail fraud, wire fraud and money laundering. She was sentenced Dec. 3 to 30 months imprisonment.
Agencies participating in the Greater Dayton Mortgage Fraud Task Force in addition to the FBI and IRS include the Ohio Department of Commerce Division of Financial Institutions, the Ohio Attorney General’s Office, the U.S. Postal Inspection Service, the U.S. Department of Housing and Urban Development Office of Inspector General, and the Perry Township Police Department.
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