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SALT LAKE CITY -- Three Utahns were charged with mortgage fraud by a federal grand jury Wednesday. The indictment alleges they operated a scheme to identify residential properties, recruited straw buyers and, through false statements on loan applications, falsely inflated the value of the properties get loans for amounts in excess of their fair market value.
James Merrill Roberts, 41; Christopher Ethington, 35; and Janet H. Ethington, 33, were each indicted on 12 total charges: three counts of mail fraud, three counts of wire fraud, one conspiracy count, four counts of money laundering; and one count of failure to file a federal tax return.
The three formed and worked for Amerifinance Group, LLC. Although Amerifinance was originally formed to purchase foreclosed homes, repair them and sell them at a profit, it soon became a framework for the frauds.
As part of a three-phase plan, their transactions yielded hundreds of thousands of dollars in inflated loan proceeds, which were diverted to the defendants and their employees. Some of the loan proceeds were used to make a few loan payments on the homes to create the appearance the loans were performing well, but the payments ceased and the loans charged in the indictment went into default.
Arrest warrants have been issued for the Ethingtons and a summons has been issued for Roberts to appear for an initial appearance on the charges.
