A Dozen Indicted on Mortgage Scheme Involving Solon Homes

A dozen people were indicted last week by a grand jury and accused of participating in a mortgage fraud scheme that involved some properties in Solon, according to court records.

Those indicted were charged with one count of conspiracy to commit mail fraud, 27 counts of mail fraud, and one count of money laundering, according to a news release from U.S. Attorney Steven M. Dettelbach.

From March 2004 through June 2006, the defendants conspired to fraudulently purchase a total of 27 properties in the Cleveland area, securing more than $6.2 million in mortgage loans, according to the indictment.

The scheme involved submitting fraudulent information on mortgage applications using "straw buyers/investors." Those straw buyers were then able to purchase homes with no money down and received cash back at closing, the indictment reads. Lenders lost about $3.3 million from the scheme, according to the indictment.

Those indicted are: Stephen S. Holman, age 40, of Cleveland; Timothy Holman, age 44, of Reminderville, OH; Deborah Jordan, age 45, of Euclid, OH; Reda Maxie, age 50, of Vermilion, OH; Paula Nezat, age 55, of Parma, OH; Robert McCoy, age 50, of Willoughby, OH; Brian R. Chenoweth, age 45, of Cleveland; David Davis, age 42, of Richmond Heights, OH; Phillip O. Taylor, age 41, of Long Beach, CA; David Richards, age 49, of Cleveland Heights, OH; Carl Pannell, Jr., age 38, of Cleveland, and Darryl Williams, age 52 of South Euclid, OH.

The Solon properties involved in the scheme are: 7385 and 7434 Capilano Drive, 5560 Elm Hill Drive, 38495 and 38730 Flanders Drive, 39825 Lochmoor Drive and 7228 Stockwood Drive.

To read the entire indictment, go here.