Two former real estate agents and a mortgage broker recently pleaded guilty in federal court to their roles in an $11 million mortgage fraud scheme involving Springfield real estate company Charles E. Walker Realty Inc., according to a news release from Beth Phillips, U.S. attorney for the Western District of Missouri.
The real estate agents - Frankie Powell, 68, of Republic, and Tammy Fedel, 54, of Springfield - pleaded guilty yesterday in separate appearances to participating in wire fraud. The mortgage broker, co-defendant William Wagoner, 58, address unknown, pleaded guilty July 6 to aiding and abetting wire fraud.
Powell, Fedel and Wagoner were named among 17 people indicted by a federal grand jury in December 2009, which alleged that Walker Realty, its owner Charles Walker and associates caused lenders in at least 26 fraudulent real estate transactions to transmit loan proceeds for residential properties at inflated values between Nov. 1, 2004, and June 30, 2006, according to
Springfield Business Journal archives.
According to the indictment, conspirators defrauded mortgage lenders by submitting fraudulent loan applications to purchase the artificially inflated properties, with a significant portion of the investment being given to the buyer without the lender's knowledge or consent.
At the time of the conspiracy, Powell and Fedel were Missouri board-certified real estate agents, who worked for and sold properties for Walker Realty. They also were private investors who purchased and re-sold real estate through the company. Wagoner, at the time, was a mortgage broker at Home Lending Solutions, Friendly Finance and American Home Lending Group, where he brokered Walker Realty mortgage transactions. He, too, was a private investor in purchasing and re-selling property through the real estate company, according to the release.
In his guilty plea, Powell admitted to his involvement in nine fraudulent real estate transactions totaling $1,126,688, for which he received $643,025. The terms of the plea dictate Powell must forfeit $643,025 to the government.
Fedel pleaded guilty to engaging in two fraudulent real estate transactions resulting in the loss of $416,187 by lending institutions.
Wagoner admitted he was involved in eight fraudulent real estate transactions totaling $2,578,531. Wagoner prepared and submitted the loan applications and verified them, despite the false income, employment and sales price information. Wagoner and others, unnamed in the release, received $127,200 in proceeds, and they will jointly be responsible for paying that amount to the government.
Powell, Fedel and Wagoner could each face up to 30 years in federal prison without parole, plus fines of up to $1 million apiece. Sentencing hearings will be scheduled following completion of presentence investigations by the U.S. Probation Office.[[In-content Ad]]