Two Oklahoma Mortgage Brokers Plead Guilty To Fraud

NewsOn6.com

MUSKOGEE, OK -- Two Oklahoma mortgage brokers pleaded guilty Tuesday to conspiracy to commit wire fraud in what the feds say was a mortgage scam involving 40 area homes and more than $11 million.

Ayo Olaniyan, 33, of Tulsa, and 38-year-old Gaile Cates of Coweta, entered their plea in federal court in Muskogee.

According to an indictment filed in August of last year, Oyaniyan and Cates conspired with Wagoner County builders Gerald Snow, Sr. and Jerry Snow to defraud mortgage lenders to loan money on homes sold by the Snows.

8/19/2009 Related story: Federal Fraud Charges Filed Against Wagoner Co. Businessmen

Federal prosecutors say the defendants lied about the cost of homes and homebuyers' incomes and pocketed millions.

According to U.S. Attorney Sheldon Sperling's office, the defendants solicited and induced home buyers by promising to pay down payments, closing costs and provide cash back to the buyers after closing. In order to get the mortgage lenders to loan funds, the defendants conspired to submit false loan applications, falsely reported the existence and source of down payments and closing costs, and inflated the purchase prices of the homes.

Gerald Snow, Sr. and Jerry Snow still face federal charges with a trial set for March 8th in Muskogee.

Olaniyan and Cates could face up to 20 years in prison and or up to $250,000 in fines.