Seven people in Wichita were charged Thursday in a federal mortgage fraud case.
A grand jury indictment alleges the scheme involved straw buyers and straw sellers, false loan applications and false supporting documentation submitted to lenders. Victims of the fraud included numerous banks, the Federal Housing Administration, the Federal Deposit Insurance Corporation (FDIC), the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corp. (Freddie Mac).
The proceeds from the fraudulently obtained loans resulted in losses to lenders of more than $221,000, according to the indictment.
The following defendants were named in the indictment:
The indictment alleges that Alam, whose real estate license had been suspended and who was on probation for a federal conviction, was the leader of the conspiracy.
He used straw sellers to purchase homes and flip the properties to straw buyers. He recruited sellers from his homeland of Bangladesh. He lured the straw sellers with promises of quick and easy profits, while he recruited straw buyers with the prospect of using the houses as investments while promising them kickbacks.
The indictment also alleges: