Grand jury indicts Springfield minister in mortgage fraud case

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Steve Hill, United States Attorney for the Western District of Missouri, announced Nov. 1 that a Springfield minister was indicted by a federal grand jury for allegedly scheming to sell worthless mortgages to at least 75 victims in several states, resulting in investor losses of at least $2.5 million, according to a release from Hill's office.|ret||ret||tab|

Francis E. Blacketer, also known as Frank Blacketer, 39, of Springfield, is charged with three counts of mail fraud and seven counts of wire fraud, according to the indictment.|ret||ret||tab|

Blacketer, a minister, is the operator of Victory Outreach Center, 623 W. Walnut St. in Springfield, according to the prosecutor in the case, Assistant U.S. Attorney Rose A. Barber. |ret||ret||tab|

The charges in the indictment allege that Blacketer used his private business, known as "Creative Funding," to fraudulently sell home mortgages, Barber said.|ret||ret||tab|

According to the indictment, from October 1999 to August 2000, Blacketer purported to various potential investors that he represented various real estate owners/borrowers who wished to obtain loans secured by mortgages. |ret||ret||tab|

Blacketer allegedly told investors that they could invest in the mortgages by funding loans directly to borrowers, or by repurchasing mortgages from him, the indictment states. |ret||ret||tab|

In return, Blacketer allegedly told investors that they could expect a single payment or a series of payments from the borrowers, the indictment states. |ret||ret||tab|

The indictment also alleges that Blacketer knew that the mortgages, deeds of trust and assignments that he offered to investors were for nonexistent properties or for properties that were owned by other individuals.|ret||ret||tab|

To date, an investigation indicates at least 75 investors may have been victimized in Blacketer's alleged scheme, with losses exceeding $2.5 million, Barber said. The victims identified so far reside in Missouri, Alabama, Georgia, Indiana, North Carolina and West Virginia, she said.|ret||ret||tab|

Persons who believe they may have been victimized by the scheme are strongly encouraged to contact FBI Special Agent Al Stiffler at 882-3303, Barber said.|ret||ret||tab|

If convicted, Blacketer could be subject to a maximum punishment of 50 years in prison without parole, plus up to $2.5 million in fines, plus restitution.|ret||ret||tab|

Hill cautioned that the charges contained in the indictment are simply accusations, and they are not evidence of guilt. |ret||ret||tab|

Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.|ret||ret||tab|

The case is being investigated by the FBI, the Springfield Police Department and the El Paso, Texas, Police Department.|ret||ret||tab|

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