Two men plead guilty in $3 million mortgage fraud

KANSAS CITY, KAN. —Two men have pleaded guilty to taking part in a $3 million mortgage fraud scheme, U.S. Attorney Barry Grissom said today.

Eric M. Rabicoff, 27, of Hutchinson, pleaded guilty to one count of money laundering. Richard Ngek, 26, of Lee's Summit, Mo., pleaded guilty to one count of conspiracy to commit money laundering and wire fraud.

In his plea, Rabicoff admitted that he was the leader of a scheme to defraud mortgage lenders that resulted in more than $3 million in loans to buyers who were not qualified to receive them.

The conspirators arranged for buyers to purchase homes that were for sale by owners. They obtained financing for the deals by submitting false loan applications to lenders.

Rabicoff directed conspirators in recruiting buyers and assembling fraudulent loan files.

In his plea, Ngek admitted he acted as a buyer on a house in Lee's Summit, Mo. In the loan application, he provided the lender with false information on his employment and income. As a result, the lender transferred more than $424,000 from an account in New Jersey. Ngek received $5,000 for his role in the transaction.

Sentencing is set for Dec. 27.