Four indicted in $16M mortgage fraud scheme
Sun-Times Media Wire June 7, 2012 6:10AM
Updated: June 9, 2012 9:59AM
Two men and two women — including an attorney and a mortgage broker, and a loan processor — schemed to defraud various lending institutions of more than $16 million through a series of fraudulent applications.
A federal indictment announced Monday alleges mortgages were obtained to purchase properties across Chicago and Country Club Hills by buyers who were qualified for loans, while the defendants profited from fees and undisclosed payments, according to the U.S. Attorney’s office.
Hakeem Rashid, 39, of Miami and formerly of Chicago, a licensed loan originator employed by two brokerage companies including 1st Regent Mortgage Funding, was charged with four counts of mail fraud and five counts of bank fraud, a release from the U.S. Attorney’s office said. A warrant has been issued for his arrest.
Kareem Broughton, 39, of Chicago, a mortgage broker and the owner of 1st Regent, was charged with two counts of mail fraud and three counts of bank fraud.
Marguerite Elise Dixon-Roper aka Elise Dixon, 46, of Darien, an attorney, was charged with one count of mail fraud and two counts of bank fraud.
Elaine Lucas aka Sophia Youssef, 52, of Chicago, a loan processor at 1st Regent, was charged with three counts of mail fraud and one count of bank fraud.
All three will be arraigned at 9:30 a.m. Thursday before Magistrate Judge Geraldine Soat Brown in U.S. District Court.
Between 2005 and May 2008, the four and others schemed to get fraudulent mortgages by making false claims in loan applications, supporting documents and settlement statements concerning buyers’ income, employment, financial condition and down payments, the indictment alleges.
Rashid, Broughton and Dixon-Roper recruited buyers and helped with their purchases, knowing those buyers were not qualified for loans, while Rashid and Broughton paid the buyers, the indictment alleges. The four also allegedly purchased properties or refinanced existing mortgages in their own names, knowing they were not qualified, the indictment alleges.
The four also received payments through 1st Regent for brokerage or origination fees on the bad loans , and for other services in preparing and closing, the indictment alleges.
Each count of bank fraud carries a maximum penalty of 30 years in prison and a $1 million fine upon conviction.