JACKSON – Jackson broker Mark J. Calhoun has been sentenced to serve 16 years and eight months in federal prison after being convicted on mortgage fraud charges. Both Calhoun and his daughter, April Calhoun, were indicted on these charges in U.S. District Court following his earlier conviction on mortgage fraud charges.
A federal jury convicted Calhoun, a former mortgage loan originator, and former loan closing agents J. Larry Kennedy and Keith M. Kennedy, of conspiracy to commit mail and wire fraud, conspiracy to launder money, multiple counts of wire fraud, and multiple counts of money laundering in relation to their roles in a mortgage fraud conspiracy and scheme.
The FBI said between September 2004 and at least through September 2006, while operating in the Jackson-metro area as Loan Closing & Title Services, Inc., the Kennedys and their co-conspirators provided fraudulent loan documents to various lenders; thereafter, the Kennedys disbursed proceeds from the fraudulent loans to Mark J. Calhoun, April Calhoun, Willie Jones, and their respective companies, as fictitious creditors.
As part of the scheme, on some of the fraudulent loans, the Kennedys falsely notarized loan documents during the loan closing process that were relied upon by the lenders to demonstrate that the specific borrower personally appeared at the loan closing and signed the closing documents in the presence of the loan closing agent in order to receive the mortgage loan proceeds.
“Mortgage fraud is one of the most serious economic crimes, and it has contributed significantly to the current economic crisis of our country and communities,” said U.S. Attorney Dowdy. “Mortgage fraud schemes not only harm lending institutions, but local cities and counties who end up having to bear the cost of lost tax revenue from foreclosed and abandoned properties.”
Also sentenced were co-defendants J. Larry Kennedy, who received five years and Keith M. Kennedy, who was sentenced to six years in prison. The judge also ordered forfeiture in the amount of $10 million for each defendant.
Calhoun’s daughter, April, was sentenced to six months home confinement and Willie Jones was sentenced to serve 37 months in prison.
“Ultimately, it is the taxpayers and legitimate borrowers who bear the most harm from these crimes,” Dowdy said. “The sentences handed down in this case should serve as a clear warning to others who contemplate this type of crime. We will continue to aggressively prosecute individuals who perpetrate these kind of devastating financial crimes against our communities.”
James C. Lee, Special Agent in Charge of Internal Revenue Service Criminal Investigation stated: “We are pleased with the sentencing of these cases. These types of crimes create a significant loss of tax revenue, drive buyers into foreclosure, leave lenders burdened with bad loans, and neighborhoods with abandoned and deteriorating properties.”
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