Grand jury indicts alleged mortgage fraudsters

The Las Vegas News.Net
Saturday 21st November, 2009

A federal grand jury in Eugene, Oregon has indicted 13 people on mortgage and loan fraud charges.

The charges, arising from the collapse of a central Oregon development company, have allegedly caused financial institutions to lose $19 million.

Prosecutors have accused principals of Desert Sun Development of taking construction financing for commercial buildings that were never built.

It is alleged that, as part of the scheme, the defendants claimed in falsely filed reports that construction was already under way when it was not.

Thirteen defendants are scheduled to appear in court on December 16th.

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