Five sentenced in $1.2 million mortgage fraud scheme

This story was amplified May 24, 2010, to include additional sentencing information.

Five co-conspirators, including three former mortgage brokers, were sentenced in federal court Tuesday for their part in a wide-reaching mortgage fraud scheme.

Charles M. Davis, of Rogersville, Scott Allen and Cheryl Joan Kassebaum, Steven Ray Spencer and Shanda Lynn Moore were sentenced on charges ranging from falsifying documents to wire fraud to money laundering in connection with the $1.2 million scheme, according to a news release from the U.S. Attorney's Office for the Western District of Missouri.

The mortgage fraud involved 20 homes with loans ranging from $200,000 to $500,000.

Davis, former mortgage broker and owner of Master Marketing Consultants received four years and three months in federal prison, along with an order to pay $1.3 million in restitution. According to the release, Davis knowingly prepared and submitted loan applications with overstated income and understated liabilities, rerouting a large portion of the loan proceeds to the homebuyers without the lender's knowledge.

Davis pleaded guilty to two counts of conspiracy, two counts of wire fraud and two counts of money laundering. He will make restitution payments of $1.28 million.

Scott and Cheryl Kassebaum, former brokers and co-owners of Metro Consulting Group, received two years and 15 months, respectively. They admitted to preparing and submitting fraudulent loan applications and sending significant portions of the proceeds to themselves and other purchasers. They will pay nearly $700,000 in restitution.

Spencer, who received two years and six months in prison along with restitution of $437,000, was a purchaser and solicited other purchasers for the scheme.

Moore, who received three years of probation and six months of home confinement along with restitution payments of $263,000 and a $3,000 fine, admitted to providing false employment verification for Spencer and another person. According to previous Springfield Business Journal coverage, Moore provided false employment and income information for Spencer and another person while she was employed with Springfield-based Office Concepts.
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