Kansas man pleads guilty in mortgage fraud case

In the following press release Marietta Parker, Assistant U.S. Attorney for the District of Kansas announced that Craig A. Long, 36, Kansas City, Mo., pleaded guilty to federal mortgage fraud charges today. Long pleaded guilty to one count of conspiracy to commit mail fraud and money laundering, and one count of mail fraud.

In his plea, Long admitted he conspired with Leawood real estate agent David Kostelec and others to defraud lenders by submitting fraudulent loan applications and false real estate appraisals. In October 2008, Kostelec pleaded guilty to leading a group of conspirators who fraudulently obtained more than $12 million in home loans.

Long admitted he and others obtained loans for purchase or refinancing of real property by submitting to the Federal Housing Administration and other lenders loan applications containing false information about borrower’s identities, employment and income, as well as false information about liens, occupancy and sales contracts.

Long admitted that in June 2005 he provided false information to lenders for money to finance the purchase of a house in the 3900 block of Harrison in Kansas City, Mo. A sales contract falsely represented there was a $43,800 lien on the property. The loan application falsely stated the buyer was earning $8,500 a month as the owner of a construction company when in fact the buyer was retired and living on Social Security. Additionally, the value of the property was fraudulently inflated.

Long admitted he committed wire fraud in June 2005 by causing $99,739 obtained through fraud to be sent from Nations Title Agency via Federal Express to the Bank of America in Greensboro, N.C.

Sentencing is set for April 6, 2009. He faces a maximum penalty of 5 years and a fine up to $250,000 on the conspiracy charge and a maximum penalty of 20 years and a fine up to $250,000 on the wire fraud charge.

Kostelec is set for sentencing Feb. 2.

The Internal Revenue Service - Criminal Investigation and Housing and Urban Development - Office of Inspector General worked on the case. Acting U.S. Attorney Marietta Parker is prosecuting.

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