Scam Loan Cowboy

From the Associated Press:

Former Dallas Cowboys linebacker Eugene Lockhart was arrested Thursday after he was indicted with eight others in an alleged mortgage fraud scheme that swindled more than $20 million from several home lenders, federal officials said.

The U.S. Attorney’s Office said Lockhart and the others made 54 fraudulent loan closings for single-family homes in the Dallas area that totaled about $20.5 million. The scheme started in February 2001 and involved obtaining loans to buy distressed or pre-forclosure properties sold at inflated prices. The defendants kept the surplus loan proceeds, according to the federal indictment.

Authorities allege the group recruited “straw” buyers and purchasers and doctored financial statements so the lender would approve the loans.

“The people involved are escrow officers, appraisers, title companies … the gamut of real estate,” said FBI spokesman Mark White. “That’s usually how these things work. It takes somebody in every single area to get this thing to work.”

Full story here.

This may be the first time in history that a professional athlete was not the victim of a financial/investment/real estate scam.

I wonder if his partners short-changed him on his cut.

With the real estate market in the doldrums, surely Mr. Lockhart’s skills could be put to better use as the next Chairman of the House Ways and Means Committee.


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