DAYTON — Randall Aaron Davidson, a ringleader in the largest mortgage fraud scheme to be prosecuted in Montgomery County, pleaded guilty this morning to three charges in federal court.

Davidson, 56, was accused by federal prosecutors in a 14-count indictment of running a property flipping scheme involving 350 fraudulent loans during a three-year period ending in 2004 worth an estimated $22 million. Almost all the properties involved are in the city of Dayton.

Dressed casually in khaki pants and an untucked brown shirt, and looking pale, the portly Davidson quietly pleaded guilty to counts of bankruptcy fraud, conspiracy to launder money and income tax evasion. He also agreed to forfeit $13.1 million in money and property and to pay about $350,000 in fines.

Davidson's attorney estimated that federal sentencing guidelines, which are no longer mandatory but which the judge must consider, would set his client's sentence at between 15 years six months and 19 years and seven months in prison. Judge Walter Rice told Davidson he could face anywhere from probation to 40 years in prison, depending on his continued cooperation with prosecutors and a host of other factors.

Davidson's sentencing hearing is set for 2:30 p.m. on May 7.

Contact this reporter at (937) 225-2393 or kmccall@DaytonDailyNews.com.