LOUISVILLE, KY (WAVE) – Six Kentuckiana men are charged with mortgage fraud totaling nearly $5-million. A federal grand jury indictment accuses the men of defrauding various banks and mortgage lenders to purchase 19 homes and then pocketing the money.
The indictment states this all happened between 2006 to 2008. One of the men charged is Steve Netherton, he was also one of the men charged in the "DerbyDeals.com" ticket controversy.
The indictment alleges Shawn Bramlett, Billy McDaniels, Dane Little, Kyle Kark, and Mark Hack of Jeffersonville and Netherton of Louisville came up with a scheme to rip off banks and commercial lending companies by submitting fake mortgage loan information to buy more than a dozen homes.
Netherton's attorney is Murray Turner and he says Netherton will enter a plea of not guilty at his arraignment on March 22nd.
"I haven't received any discovery at all from the United States so we don't know really where they are coming from with this," said Turner.
Recently, police arrested Netherton on suspicions he was part of a car loan scheme. "Based on that arrest and our communications with United States, we knew an indictment was going to be coming," said Turner.
A house on S. Fourth Street is just one of the 19 properties named in the indictment. It states Netherton and four others took out a mortgage through Countrywide Home Loans for around $440,000.
Court records show after the loan applications were approved for funding, the money was wire transferred to different banks in Louisville and that the six men kept it for personal use.
Steve Adams is a Loan Officer with Stockyards Bank. He says even in the last few years lenders are much more strict. "I don't think in our lifetime we will ever see things as relaxed as they were in terms of lending, so unfortunately for a period of time there was a lot of people out there that thought they could make a quick buck," said Adams.
Now Adams believes pulling off a mortgage scheme- like the one the men are accused of- will be a lot tougher.
"The days of the questionable lenders, the days of the relaxed guidelines, the days of the loan officers having any type of influence at all over the values of property, it's all over," said Adams.
The same grand jury also indicted Netherton and Little, charging them in a separate, but similar scheme involving car loans. The accusations total nearly $120,000.
As for the Derby ticket fraud case, Netherton is set to go to court for a hearing on that, next month.
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