US DOJ Press Release — October 15, 2004
KANSAS CITY , Mo. — Todd P. Graves, United States Attorney for the Western District of Missouri, announced today that a real estate entrepreneur and a former employee of a mortgage brokerage have been indicted by a federal grand jury in a property flipping scheme and a mortgage fraud. Brent Michael Barber , 40, of Belton, Mo., and Vernon David Williams , also known as Dave Williams, 57, of Kansas City, Mo., were charged in a four-count indictment returned by a federal grand jury in Kansas City on Oct. 7, 2004. Barber and Williams appeared for an arraignment hearing before U.S. Magistrate Judge John T. Maughmer this morning and entered a plea of not guilty.
Barber was involved in the business of buying and selling real estate, and did business as KC Properties and KC Securities LLC. Williams was a loan employee of mortgage brokerage companies in Merriam, Kan., and Lee’s Summit, Mo.
Count One of the federal indictment alleges that Barber and Williams conspired to defraud MILA, Inc., a mortgage lending company with its principal office in Mountlake Terrace, Wash., and Finance America LLC, a mortgage lending company with its principal office in Irvine, Calif., from July 24, 2004, to Sept. 16, 2004. The indictment alleges that Barber and Williams attempted to borrow $285,000 from MILA in connection with the purchase of property at 3741 Locust in Kansas City, Mo. In furtherance of the conspiracy, Barber created a trust in the name of the true owner in order to conceal the additional transfer (the “flip”) of the property on the day of closing for a greater price, and knowing that MILA would not have approved the loan if it had known the seller acquired the property the same day it sold the property. Barber and Williams allegedly caused an inflated appraisal to be prepared for submission in the relation to that loan application. They allegedly prepared and provided material false, fraudulent and misleading loan applications and other documents regarding the loans.
Counts Two, Three and Four of the federal indictment relate to a second real estate transaction in August 2004, in which Barber and Williams allegedly attempted to receive a $158,251 loan from Finance America on behalf of another person to purchase property at 1013 Brookside Drive in Raymore, Mo. According to the indictment, a fraudulent loan application was submitted that contained false employment and income information, and forged rent checks were provided as proof that the proposed borrower had paid rent for the last several months. Counts Two, Three and Four each relate to a separate facsimile transmission or wire transfer of money related to the loan.