14 Charged With Bank Fraud Involving Home Sales

CHICAGO (STMW) – Fourteen people have been arrested in three separate alleged mortgage fraud schemes involving four homes in the Englewood neighborhood.

The arrests and charges came after federal agents posed as straw buyers of houses and sought help in financing and closing fraudulent mortgage purchases, a release from the U.S. Attorney’s office said. In each of the three cases, defendants had various roles in allegedly arranging fraudulent mortgage loans.

Two of the 14 defendants were allowed in two separate schemes and were each charged Monday with one count of bank fraud for each scheme. The other 12 were charged with one count of bank fraud in one of the three schemes, the release said. Each defendant allegedly played a role in the fraudulent transactions, including lying on loan applications and other mortgage documents.

The arrests and charges were the result of Operation Madhouse, an undercover investigation by the FBI, U.S. Department of Housing and Urban Development’s Office of Inspector General and the Internal Revenue Service Criminal Investigation Division.

Those charged Monday were Muyi Shogbuyi, 57, Shamekia Kimbrough, 35, Monalisa McKinney, 32, George Livingston, 38, Kendall Jones, 45, Stanley Hayes, 43,  Thomas Underdue, 43, Lashan Hicks, 42 and Ahmed Idowu, 30, all of Chicago, and Charles Patterson, 60, of Downers Grove, Philip McMahon, 47, of Mokena, Sean McKee, 52, of Davis, Richard Stokes, 32, of Harvey, and Latoia Green, of an unknown location.

Bank fraud carries a sentence of up to 30 years in prison and a $1 million fine.

© Sun-Times Media Wire Chicago Sun-Times 2011. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

  • auditor

    Awesome bust! Almost as good as the show ‘Bait Car’….Wouldn’t it be great if they could get these crooks on camera. It’s been over 10 years since I’ve done mortgage loan fraud investigations, but still get a thrill when a good bust goes down … especially with straw borrowers, bad loan officers and appraisers, etc. Mortgage loan fraud is one of the reasons why the American Dream has become America’s Nightmare.

  • NWA

    Damn! Thirty years in prison for some quick dough. I’m sure they thought they’d get away with it. Some of these people may never see freedom again. So, if the choices were to be homeless, living under a bridge or in prison for thirty years, I think I would choose the bridge.


  • Mike


  • Neka QueenNeka

    It said, up to 30 years. They might not get that much time

blog comments powered by Disqus
Daily Weather Reports Delivered To You!SIGN UP NOW: Get daily weather reports every morning from meteorologist Steve Baskerville!
CBS Sports Radio RoundupGet your latest sports talk from across the country.

Listen Live