08/02/2009

News / Sixth and Final Conspirator Enters Guilty Plea in Mortgage Fraud Scheme

CINCINNATI, OH—Jessica A. Zbacnik, 42, of Monroe, pleaded guilty in United States District Court here for her role in an extensive mortgage fraud scheme that affected 210 residential properties, including 205 in Montgomery County.

Gregory G. Lockhart, United States Attorney for the Southern District of Ohio, Keith L. Bennett, Special Agent in Charge, Federal Bureau of Investigation; Jose Gonzalez, Special Agent in Charge, Internal Revenue Service Criminal Investigation, and other members of the Greater Dayton Mortgage Fraud Task Force announced the plea entered today before U.S. District Judge Michael A. Barrett.

Zbacnik pleaded guilty to one count of conspiracy to commit money laundering and one count of conspiracy to commit mail fraud, wire fraud and money laundering. She is the sixth and final defendant to have pled guilty to various mortgage fraud charges following a June, 2008 indictment which was handed down in Dayton federal court.

In court, Zbacnik admitted that she was part of the conspiracy that took place between March 2002 and June 2008 and operated and controlled various real estate mortgage and title insurance related businesses and corporations with the object of entering into a fraudulent scheme designed to obtain monies, profits, real property, and other things of value.

According to the statement of facts filed in court, Zbacnik admitted that she had helped arrange, facilitate, and manipulate documents associated with real estate sales and closings in order to fraudulently obtain excess mortgage loan proceeds generated from the sale of residential properties for the personal benefit of the defendant and her co-conspirators.

Zbacnik’s five other co-conspirators were:

* Edward McGee, 74, of Dayton, who pleaded guilty on May 12, 2009 to conspiracy to commit money laundering
* Kenneth O. McGee, 49, of Dayton (son of Edward McGee), who pleaded guilty May 12, 2009 to conspiracy to commit mail fraud, wire fraud, and money laundering and conspiracy to commit money laundering
* Julian M. Hickman, 31, formerly of Centerville and now living in East Cleveland, who pleaded guilty to conspiracy and tax crimes on December 15, 2008
* Robert Mitchell, 42, of Vandalia, who pleaded guilty to conspiracy to commit mail fraud, wire fraud, and money laundering and conspiracy to commit money laundering on March 11, 2009
* Kamal J. Gregory, 34, of Centerville, who pleaded guilty to conspiracy to commit mail fraud, wire fraud, and money laundering and conspiracy to commit money laundering on April 14, 2009

Zbacnik faces up to 30 years' imprisonment on the charge of conspiracy to commit mail fraud, wire fraud, and money laundering, a $1 million fine, and five years of supervised release. She faces additional penalties of up to 20 years' imprisonment, a fine the greater of either $500 thousand or twice the value of the property involved in the subject transaction, and three years of supervised release on the conspiracy to commit money laundering charge. All six co-conspirators are awaiting sentencing.

Lockhart commended the cooperative efforts of all agencies participating in the Greater Dayton Mortgage Fraud Task Force, which includes the FBI, IRS, Ohio Department of Commerce Division of Financial Institutions, Ohio Attorney General’s Office, the U.S. Postal Inspection Service, the U.S. Department of Housing and Urban Development Office of Inspector General, and the Perry Township Police Department, along with Assistant U.S. Attorney Dwight Keller, who is prosecuting the case.

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