A Georgia woman pleaded guilty pleaded for her role in a three-year scheme resulting in the approval of approximately 450 mortgages based on fabricated documents and false information.
According to the charges and other information presented in court, Kimberly Johnson participated in a conspiracy in which homebuyers and mortgage brokers submitted fraudulent loan applications to induce mortgage lenders to fund mortgages. Johnson’s role was to alter or fabricate the supporting documents for the loans, including bank statements, pay stubs and Forms W-2.
Johnson helped approximately 450 homebuyers to commit mortgage fraud by obtaining loans for which they were unqualified. The fraudulent loan applications were submitted to numerous mortgage lenders, and some of the mortgage brokers who worked on obtaining the loans were part of the conspiracy. These fraudulent loans totaled approximately $161 million, and many of those loans defaulted.
Johnson, of Hampton, Georgia, pleaded guilty to one count of conspiracy to defraud the US in a mortgage fraud scheme. A part of her plea, she has agreed to pay restitution to the victims of the conspiracy, including the US Department of Housing and Urban Development. She is scheduled to be sentenced on April 11.
“The defendant and her co-conspirators brazenly manipulated the real estate lending process out of sheer greed,” said Ryan Buchanan, US Attorney for the Northern District of Georgia. “Criminals like Johnson, who engage in mortgage fraud, threaten the soundness of the real estate market in our communities. Our office is committed to prosecuting these bad actors who abuse the system for their personal gain and to safeguard the mortgage lending system for those who rely on this financial support.”
