Guilty plea in 3.6 Million Dollar Mortgage Fraud

United States Attorney for the Western District of Missouri, Beth Phillips announced that Quentin Henley, age 37, from Kansas City, Missouri has pleaded guilty to mortgage fraud and money laundering. Mr. Henley entered his guilty plea in federal court and stated his acts of participation in the conspiracy that involved thirty four residential properties within the Kansas City. The properties total more than three million six hundred thousand dollars.

United States District Judge Fernando J. Gaitan hear Mr. Henley’s plea in regard to the indictment that was obtained on July 14, 2009.

Mr. Henley owned three different businesses Quality Remodeling, All and One Construction and Corporate Remodeling Associates. The conspiracy to defraud began in July of 2003 and continued until January of 2009. Mr. Henley purchased residential homes at reduced rates to rehabilitate the properties and then rent or sell them. However, Mr. Henley never rehabilitated any of the thirty four properties.

Mr. Henley and his co-conspirators submitted mortgage applications to mortgage lending institutions that contained fraudulent income, assets, and other fraudulent information in order to obtain mortgage loans on the properties involved.

Mr. Henley pleaded guilty to money laundering as well.

Mr. Henley is currently awaiting sentencing and is subject to a maximum sentence of up to fifteen years in federal prison without parole, a fine up to five hundred thousand dollars and can be ordered to pay restitution. Scheduling of Mr. Henley’s sentencing hearing will be completed after a presentencing investigation is completed by the United States Probation Office.

The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. Assistant United States Attorney Linda Parker Marshall is prosecuting the case.