Henry County

Metro Atlanta woman pleads guilty to $161 million mortgage fraud scheme

Looking for a home in one of the most expensive places to live in the country? You can for a decent price but there is a small catch.
FILE PHOTO (Andy Dean Photography/Andy Dean - stock.adobe.com)

HAMPTON, Ga. — A 55-year-old woman will soon be sentenced for her role in a mortgage fraud plot spanning over three years.

[DOWNLOAD: Free WSB-TV News app for alerts as news breaks]

Kimberly Johnson, 55, of Hampton, Ga., pleaded guilty to one count of conspiracy to swindle the United States in a mortgage fraud scheme.

According to the U.S. Attorney’s Office of the Northern District of Georgia, Johnson got involved in a plan, in which homebuyers and mortgage brokers submitted false loan applications to persuade mortgage lenders to fund mortgages.

The DA said Johnson’s role in the plan was to alter or forge the documents for the loans, including bank statements, pay stubs and W-2 forms.

For over three years officials said the 55-year-old woman helped 450 homebuyers commit mortgage fraud by getting unqualified loans.

TRENDING STORIES:

The fake loan applications were submitted to several mortgage lenders, and some mortgage brokers who worked on getting the loans were also a part of the scheme, according to the DA.

The loans totaled $161 million. Many of the loans are insured by the Federal Housing Administration (FHA), resulting in claims being paid for mortgages that have defaulted.

“When individuals commit fraud against federally funded programs, it creates significant risks to the programs and limits the financial resources available to assist hard working individuals realize the American dream of homeownership,” said Special Agent-in-Charge Jerome Winkle with the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General (OIG).

Johnson will be sentenced on April 11. As part of her plea, Johnson has agreed to pay restitution to the victims of the conspiracy, including the U.S. Department of Housing and Urban Development.

[SIGN UP: WSB-TV Daily Headlines Newsletter]

0