Two More Indicted Today In Multi-million Dollar Mortgage Fraud Scheme
Posted on 7/11/2011
Defendant: Scott Johnson, Hector Molina
Prosecutor Ron O’Brien announces today that the Franklin County Grand Jury has indicted Scott L. Johnson and Hector I. Molina for their participation in a mortgage fraud scheme involving 3 residential properties in Franklin County. During the period between September 2006 through July 2007, it is alleged that fraudulent mortgage loans were obtained resulting in the issuance of over $2,320,000.00 in unlawfully secured loan proceeds. Doing business as Premier Morcon LLC, Paradigm Enterprises, Monkey Investment Group, and/or EBCO Holdings, the indictment alleges defendants received and laundered approximately $350,000.00 through a number of personal and business bank accounts owned or associated with Johnson and Molina, or other individuals who were the subject of a previous indictment handed down in April, 2011.
Today’s indictment is the result of a lengthy investigation which also led to a related indictment in April of eight individuals involved in a large scale mortgage fraud scheme. That fraud operation was allegedly orchestrated by Nathan Orms, Charles Kasbee, Jr., and Robert G. Bobo II, and involved the issuance of more than 22 fraudulent mortgage loans and $12,000,000.00 in fraudulent loan proceeds. Most of the properties ultimately wound up in foreclosure, resulting in extensive losses to the lenders. The average loan obtained by thosee defendants exceeded $500,000.00. Johnson and Molina participated in the scheme on subsequent “flips” pertaining to 3 of the subject properties.
In both cases, fraudulent appraisals, falsified loan applications and fraudulent closing documentation were utilized to facilitate commission of the real estate scheme.
The investigation was conducted by the Central Ohio Mortgage Fraud Task Force, which includes members of the Franklin County Prosecutor’s Office, Upper Arlington Police Department, Ohio Attorney General’s Office, as well as other federal, state and local law enforcement agencies. Further indictments and/or plea agreements are anticipated.
“Mortgage fraud is theft, and it has a significant, detrimental impact on our neighborhoods, our real estate markets, and ultimately the health of our economy as a whole”, O’Brien stated.