Tuesday, February 5, 2013

Trial Pressure Forces Accused Scammers To Cop Guilty Pleas After Testimony Begins In Mortgage Fraud Case That Included Ripping Off Unwitting Lenders, Underwater Homeowners By Profiting Off 'Simultaneous Closing' Short Sale 'Flips'

From the Office of the U.S. Attorney (Columbus, Ohio):

  • Deborah L. Kistner, 50, and her husband, Mark A. Kistner, 52, both of Hilliard, pleaded guilty three days after their trial started on a $7 million mortgage fraud scheme they carried out between June 2006 and July 2010.
  • Deborah Kistner pleaded guilty to three counts of conspiracy to commit bank fraud, three counts of conspiracy to commit money laundering, and one count of bank fraud. Mark Kistner pleaded guilty to one count of conspiracy to commit money laundering.

    Deborah Kistner operated Premiere Title Company in Hilliard. She deceived lenders in connection with the purchases of real estate in Ohio and Florida. Evidence presented during the first three days of the trial showed that she conspired with others to secure inflated loans for real estate and kept the excess proceeds or used them to pay others involved in the conspiracy. Deborah Kistner intentionally failed to provide lenders with critical purchase contract language and accurate settlement statements.

    Deborah and Mark Kistner also schemed to defraud lenders and launder the money they received through simultaneous “short sale” closings where the lenders would agree to absorb losses on existing mortgage loans while Deborah Kistner actually sold those properties on the same day for a profit and laundered the profits through bank accounts controlled by Mark Kistner. The government was prepared to show that they secured as much as $7 million in fraudulent loans through their schemes.
For the U.S. Attorney press release, see Hilliard Couple Plead Guilty In $7 Million Mortgage Fraud Scheme.

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