Four charged in mortgage fraud

Shawna Randall, Cleophus Turner, Julie Shoumbert and Maurice Gardner were indicted September 16 for allegedly running a multi-year scheme that used fake employment and income records to help unqualified borrowers obtain more than 20 home loans totaling $7.3 million.

Fake documents flooded lenders

Randall allegedly recruited unqualified borrowers and prepared fraudulent W-2 forms, pay stubs and bank statements. Turner, a mortgage loan officer at Verity Mortgage, submitted the falsified documents in official applications knowing they were fabricated.

“These defendants allegedly conspired to corrupt the mortgage process by flooding lenders with fabricated finance and employment information to push through unqualified borrowers.”

Bank statements forged on demand

Shoumbert and Gardner allegedly produced falsified bank statements at Randall's request, which were then submitted to Eustis Mortgage Corporation, doing business as Verity Mortgage, as part of borrowers' loan qualification files.

FHA and VA loans targeted

The scheme involved Federal Housing Administration, Department of Veterans Affairs and conventional mortgage loans for properties in Texas and Oklahoma. The Department of Housing and Urban Development has already paid more than $493,499 in partial FHA insurance claims from loans connected to the alleged scheme.

Taxpayers bear the cost

Federal investigators say fraudulent applications involving government-backed mortgages expose federal programs and ultimately taxpayers to losses when loans fail. The VA Home Loan Program provides benefits to eligible veterans and service members.

“Stopping fraud in the VA Home Loan Program is not just about protecting resources, it's about safeguarding the benefits that our veterans have earned.”

Randall and Turner face 30 years

If convicted, Randall and Turner each face up to 5 years on the conspiracy charge and up to 30 years on each of three fraud and false-statement counts, plus fines and mandatory forfeiture. Shoumbert and Gardner each face up to 5 years on the conspiracy charge.

Investigation spans three agencies

The investigation was conducted by the Offices of Inspector General for HUD, the Department of Veterans Affairs and the Federal Housing Finance Agency. Assistant U.S. Attorney Chad Meacham is prosecuting the case in the Northern District of Texas.