Jacksonville mortgage brokers charged in $1.8 million scheme

Federal prosecutors charge that a pair of Jacksonville mortgage brokers masterminded a network of schemes that bilked mortgage loan companies out of more than $1.8 million in 13 phony real estate transactions — 12 of which involved First Coast homes.

Both worked for Access-E Mortgage Inc., but the St. Augustine-based company's website does not list them as working there now.
A grand jury indictment filed in the United States District Court Middle District of Florida Jacksonville division Wednesday, stated that Jacksonville mortgage broker Gregory W. Willson and loan processor Brian Willson were the masterminds of the operation from 2005 to 2007.

The indictment indicates that the matter is being handled by U.S. government prosecutors because funds were mailed and wired across state lines.

Although 16 named individuals took part in varying roles in the complex network — and all are charged in the indictment with conspiracy to defraud — the premise actually was simple, the government filing shows.

Lionel Cox, owner of Jacksonville-based Distressed Property Solutions Inc., would recruit homeowners who were near foreclosure, the indictment said. Co-conspirators would pose as buyers, submitting fraudulent information to mortgage companies to get mortgage loans.

The dummy buyers claimed the homes would be their primary residence, overstate their monthly incomes to qualify for the loans — claiming they worked for Neil Willson, another co-conspirator.

Closings were manipulated, the mortgage loan money was pocketed and co-conspirators were paid for their roles in the scheme, the government charged. Co-conspirators Cassie Clarkson, Erika Outlaw and Joseph Gullett helped manipulate closing documents, the indictment stated.

In the end, the original distressed homeowners would remain in their homes, but would become renters — with the Willsons as their landlords, prosecutors charged. The rent money they paid was initially used to pay the mortgages in the names of the dummy buyers, but Gregory Willson would eventually stop making the mortgage payments and pocket the money for himself, prosecutors charged in the indictment.

Under the scheme, co-conspirators often served as dummy buyers multiple times, each time claiming the distressed property purchased would be their primary residence. Lyndon Navarre was named in four; Clifford Willson in two; Khalid Majied in two; and five others for one fraudulent mortgage each.

"It was further part of the conspiracy that the conspirators would take actions necessary to hide and conceal the existence of the conspiracy," the indictment states.

The dummied mortgages ranged from $83,000 to $180,000. The U.S will seek the ill-gotten gains from the fraudulent mortgages from all involved, the indictment states.

Defendants Brian Willson, Cox, Navarre, John Arroyave and Gregory M. Willson were listed by the court as fugitives as of Monday. The others have been released on bond.

Duped companies, according to the indictment, were the Lending Group Inc., Avantor Capital LLC, Paragon Home Lending LLC, Central Pacific Mortgage Corp., Fremont Investment & Loan, First Magnus Financial Corp., First Collateral Services Inc., Decision One Mortgage Co. LLC, Aames Funding Corp., Argent Mortgage and Homeland Capital Group LLC, Novastar Mortgage Inc. Fremont was the only company hit twice in the case.