Two year Investigation leads to six indictments in OH

United States Attorney for the Southern District of Ohio, Carter Stewart along with Ohio Attorney General Richard Cordray, Warren County Prosecuting Attorney, Rachel Hutzel, and Special Agent in Charge of the Federal Bureau of Investigation, Keith Bennett announced on February 4th the indictments of six individuals in a mortgage fraud scheme.

The indictments are the result of a two year investigation into Eric Duke, age 35, Terrence Monahan Jr, age 36, Bernard J Kurlemann, age 56, and Bryan Sanneman , age 38 and the sale of four residential properties between the years 2006 and 2007.

The indictment alleges that the two builders Mr. Kurlemann, owner of Kurlemann Homes of Long Cove and Long Cove Management, LLC and Mr. Sannemann, owner of Sannerman Homes Inc conspired with Mr. Monahan, former banker of Huntington National Bank and Eric Duke, tax advisor, interior designer and owner of Rivendale Property Management Group, L.P to defraud financial institutions.

Mr. Duke located straw buyers to use their good credit and identities on mortgage loan applications. He contracted with a mortgage broker who submitted the fraudulent mortgage applications. Mr. Monahan used his position at the bank to supply Mr. Duke with a means to create fraudulent bank statements and fraudulent verifications of deposit. Mr. Kurlemann and Mr. Sannemann are accused providing fraudulent verification of down payment funds to mortgage lenders in regard to the properties involved and that they conspired with Mr. Duke to obtain that information and obtain the straw buyers to sell the properties.

All four men have been charged with conspiracy. Mr. Duke and Mr. Monahan are also charged with conspiracy to commit wire fraud and wire fraud. The maximum sentenced for both crimes is twenty years in federal prison.

Mr. Duke, Mr. Sannemann and Mr. Kurlemann are charged with conspiracy to commit loan fraud and loan fraud. The maximum sentenced for both crimes is thirty years in federal prison.

The prosecuting attorney is forfeiture of all property or assets derived from the crimes in regard to all the men involved.

The approximate total cost as a result of the scheme is six million seven hundred thousand dollars. The straw buyers in the case are being charged under separate indictment. Francisca Webster, age 46, was charged with conspiracy to commit wire fraud and Christopher Gagnon, age 37 was charged with loan fraud both crimes carry a maximum sentence of thirty years in federal prison.

The investigation was handled by the Greater Cincinnati Mortgage Fraud Task Force. The Task Force is a multi-agency and jurisdictional incentive that was created to fight against mortgage fraud. The cases will be prosecuted by Assistant United States Attorney Jennifer Barry and Assistant United States Attorneys Bruce McGary from the Warren County Prosecutors Office and Christopher Wagner from the Ohio Attorney General Richard Cordray’s Office.

An indictment is merely an allegation of guilt and all defendants are presumed innocent until proven guilty in a court of law.

All four defendants will be summoned in regard to their initial appearances before a United States Magistrate Judge.