United States v. Brown, et al.
, (08 CR 453)
In one of the largest federal mortgage fraud prosecutions ever in Chicago, alleged ring-leader
Bobbie L. Brown, Jr., and 20 co-defendants were charged with various counts of mail, wire and
bank fraud and using false identification documents in a 26-count indictment that was unsealed
yesterday. Other defendants include an attorney, a tax practitioner, seven loan officers, two realtors,
and a new home builder. Between August 2004 and May 2008, the defendants allegedly fraudulently
obtained 150 mortgage loans on homes in the Chicago area, from which they obtained more than $95
million in loan proceeds from lenders for themselves and others. The victim lenders incurred losses
totaling approximately $19 million on the loans, the indictment alleges, because they were unpaid,
causing the residences to be foreclosed upon and resold for amounts less than the outstanding
mortgage loan balance.
According to the indictment, Brown, 44, of Country Club Hills, operated several businesses,
including Chicago Global Investments, Inc., B&M Customs Homes, Inc., Brown Trucking, Inc., and
World Wide Investments, Inc., which he used to facilitate the purchase and sale of real estate. The
residences that were the subject of the alleged fraud scheme were located in various Chicago suburbs,
including Country Club Hills, Flossmoor, Frankfort, Mokena, Woodridge, Elmhurst, Lemont, Orland
Park, Addison, Homewood, Naperville and Aurora. The victim lenders included First Magnus
Financial Corp., Accredited Home Lenders, Inc., Argent Mortgage Company, Midwest Funding
Bancorp, American Home Mortgage, Long Beach Mortgage Co., First Franklin Financial Company,
and Countrywide Home Loans, Inc.
The fraud scheme alleges that Brown individually acquired several residences using false
personal identification information, such as stolen social security numbers. It further alleges that
Brown – together with defendants Barry Adams, 52, of Lansing, field manager for Chicago Global;
Leslie Love, 42, of Country Club Hills, a licensed real estate agent and owner of Total Real Estate;
Calvin Townsend, 49, of Homewood, a licensed realtor and owner of Custom Home Service Corp.;
and Gwendolyn Jackson, 43, of Flossmoor, who oversaw Chicago Global’s financial affairs –
purchased and caused to be purchased residences, individually or through nominees, including
defendants David Jackson, 57, of Justice; Prentice Mason, 30, of Dyer, Ind.; Buford Peteet, 64,
of Sauk Village; Jean Hernal, 48, her husband, Edgardo Hernal, 51, both of Westchester; Bozidar
Kelic, 40, of Chicago; and Donald J. Felton, 57, of Oak Park, owner of Donald J. Felton
Accounting and Tax Services. The nominees, or straw purchasers, were recruited by the others to
buy multiple residences with promises of “no money down” and “cash back at closing” if they agreed
to participate. The nominees were also promised that the residences would be rented out by Brown,
Love, Gwendolyn Jackson and Townsend or their agents; that they would not have to make any
mortgage payments; and that their names would be removed from the title after approximately 12
months. Brown, Adams, Love, Gwendolyn Jackson and Townsend referred the nominee buyers to
loan originators, including defendants Brandon Ellington, 27, of Country Club Hills; Wayne
Harris, 39, of Chicago; Shalonda Sloan, 33, of Chicago; Tiffany Thurman, 37, of Naperville;
Charquette Christine Campbell, 29, of Chicago; Dominic Moscato, 34, of Darien; and Latonja
Spencer, 43, of Country Club Hills, to prepare allegedly fraudulent loan applications.
The indictment alleges that Brown, Adams, Love, Gwendolyn Jackson and Townsend paid
the nominees and some loan originators, using the proceeds from real estate transactions, and
4