HOUSTON -- On Wednesday, US Marshals and attorneys lead suspects in through the back of the federal courthouse to face a ten count indictment for a mortgage fraud scheme that began in 2004.
It is alleged that six people committed $25 million in mortgage fraud across Houston and its suburbs.
The indictment alleges the scheme worked a lot like this: The suspects would find a home for sale, lets say $200,000.
They would then get a phony appraisal that would almost double the homes actual value. In that case, $400,000.
The culprits would then look for an investor. Thats someone to actually put the house in their name using their good credit for the closing and title.
A bank would then loan the money for the house, which has the phony appraisal value. The crooks would then pay the seller the $200,000 asking price and pocket the other $200,000.
Its alleged the group used this scheme to purchase expensive condominiums on Yupon Street in Houston as well as near The Galleria area on Briar Hollow and McCue.
Some of the culprits family members told 11 News that even they were convinced to invest in these properties, such as Briar Hollow.
11 News photo
They say the appraised value for units there were inflated by more than $100,000 and that many of those condominiums are now in foreclosure.