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Jun 18, 2008 7:45 pm US/Central
11 Indicted In Dallas For Mortgage Fraud Scheme
Reporting
Jack Fink
DALLAS (CBS 11 News) ―
A motivational speaker is among 11 people indicted in a mortgage fraud scheme.
Eight of those people indicted appeared in Dallas Federal Court Wednesday afternoon. They face a 51-count indictment.
The alleged ring leader, Eric Farrington, is the ex-husband of Sheila Farrington-Hill, who was indicted in the Dallas City Hall scandal on unrelated charges.
Records show he served time in federal prison in 1995 for filing false tax returns and that he filed for bankruptcy two years ago.
But on his Web site for motivational speaking, he says he is a self-made millionaire and that he advises people to invest in real estate.
Besides Farrington, most of the others charged didn't want to comment as they left the courthouse.
They're all accused of illegally inflating the sales prices of houses so they could obtain larger loans, and eventually make more money on the deals.
Prosecutors say three houses in a North Dallas neighborhood near Arapaho and Hillcrest are among those involved in the alleged scheme.
Prosecutors say Farrington and the others will have to forfeit about $8.5 million. Before he could leave court, the judge ordered him to pay a $25,000 bond.
If convicted, Farrington and the others could face millions of dollars in fines and many years in prison.
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