CHARLOTTE, NC (AP) -- Federal prosecutors have accused six Charlotte area residents of mortgage fraud.
The Charlotte Observer reported the group is accused of working with a homebuilder to sell houses by offering kickbacks to fake buyers. Prosecutors say the kickbacks were not disclosed to lenders or included in the loan applications.
Prosecutors say the scheme resulted in hundreds of sales between 2005 and 2008. Court documents say a builder paid more than $5 million in kickbacks.
Prosecutors say the suspects fraudulently caused lenders to provide more than $42 million in loans.
Prosecutors say the homes were valued between $100,000 and $200,000 and the company offered kickbacks of 15 percent of the sales price.
Those indicted last week are charged with mortgage fraud conspiracy and money laundering conspiracy.
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