A Monett real estate family yesterday was sentenced to jail time and orders of restitution for their parts in a nearly $11 million mortgage fraud scheme.
Charles E. Walker, 58, his wife, Linda F. Walker, 59, and their son, Lee Edward Walker, 36, were sentenced in separate appearances for the scheme conducted through Charles E. Walker Realty Inc., a Springfield company that listed, marketed and sold residential real estate in the area, according to a news release from Beth Phillips, U.S. attorney for the Western District of Missouri.
Charles Walker has been sentenced to 10 years without parole in federal prison and ordered to pay $4.35 million in restitution, which equates to the losses suffered by the lenders as a result of the scheme. Linda Walker received a one-year jail sentence without parole, and Lee Walker was sentenced to 30 months. Both Linda and Lee Walker are jointly and severally liable with Charles Walker to pay the restitution.
Charles Walker owned the company, while Linda Walker served as its secretary. Charles, Linda and Lee Walker also were private investors who purchased and resold residential real estate through the company for personal financial gain.
In July, the
Walkers pleaded guilty to conspiracy to commit wire fraud as part of the mortgage fraud scheme that occurred November 2004-June 2006. Charles Walker also pleaded guilty to money laundering.
Charles Walker admitted that he was the organizer and leader of the scheme, from which he pocketed more than $1 million. Conspirators were involved in 26 fraudulent real estate transactions, where they defrauded mortgage lenders by submitted false loan applications to purchase the properties at artificially inflated prices, according to the release.
A significant portion of the purchase prices of the homes was returned to the buyers without the lenders' knowledge or consent. As a result, conspirators received kick-back payments to the tune of roughly $4.3 million.
Linda Walker admitted to being involved in two of the real estate transactions, while Lee Walker pleaded guilty to his involvement in seven.
The Walkers are among 17 people who have pleaded guilty and have been sentenced for their roles in the mortgage fraud scheme, the release said.
This case was prosecuted by Assistant U.S. Attorney Robyn McKee and was investigated by the U.S. Secret Service and IRS-Criminal Investigation.[[In-content Ad]]
