A St. Charles County mortgage broker pled guilty to two counts of wire fraud related to mortgage fraud on Tuesday.
After the first day of trial on Monday, Mickey Johnson, 51, of O'Fallon, admitted to participating in a fraud scheme relating to the sale of four properties located in the 3900 block of Labadie Avenue in north St. Louis.
According to the United States Attorney's Office, Johnson, acting as the mortgage broker, manipulated the loan applications of buyers by inflating their income and misstating their intention to occupy the properties as a primary residences. He also concealed down payments and other cash concessions made to the buyers from the sellers.
Johnson profited from the sales as a "silent partner" to the seller of the properties unknown to the lenders.
The properties listed in the indictment involved four lenders from Florida, Oregon, Texas and Georgia and the fraud scheme resulted in more than $200,000 in losses to the lenders when the homes went into foreclosure. Since foreclosure, the homes have fallen into disrepair and are no longer habitable.
Each count of wire fraud carries a maximum penalty of 20 years in prison and/or fines up to $250,000.
Johnson is scheduled for sentencing on Nov. 29, 2011.
