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Hampton woman admits guilt in $161 million mortgage fraud scheme

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Sunday, January 12, 2025

Hampton woman admits guilt in $161 million mortgage fraud scheme

Attorneys & Judges
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Ryan K. Buchanan U.S. Attorney | US Attorney's office Northern District of Georgia

Kimberly Johnson has admitted guilt in a mortgage fraud scheme that spanned over three years, resulting in the approval of around 450 mortgage loans based on falsified documents and misinformation. Many of these loans were insured by the Federal Housing Administration (FHA), leading to claims being paid for defaulted mortgages.

U.S. Attorney Ryan Buchanan stated, "The defendant and her co-conspirators brazenly manipulated the real estate lending process out of sheer greed." He emphasized the threat such actions pose to the real estate market's stability and reaffirmed his office's commitment to prosecuting those who exploit the system.

Special Agent-in-Charge Jerome Winkle from HUD's Office of Inspector General commented on Johnson's involvement, noting that she fabricated material documents to falsely qualify individuals for loans. "When individuals commit fraud against federally funded programs, it creates significant risks," he said, highlighting HUD OIG's dedication to pursuing those who abuse HUD-funded programs.

Edwin S. Bonano, Special Agent in Charge of FHFA-OIG’s Southeast Region, remarked on the importance of holding individuals accountable for exploiting the mortgage lending system. "This case highlights the importance of collaboration between our law enforcement partners," he added.

Kyle A. Myles from FDIC OIG noted Johnson's role in altering and fabricating documents as part of a scheme that approved approximately 450 fraudulent mortgage loans. He affirmed FDIC OIG's commitment to investigating fraudulent acts threatening financial system safety.

Sean Burke, Acting Special Agent in Charge of FBI Atlanta, stated that Johnson failed her duty by engaging in mortgage fraud. "We are proud to have worked with our law enforcement partners," he said regarding efforts to prosecute misconduct impacting residential mortgage market integrity.

According to U.S. Attorney Buchanan, Kimberly Johnson was involved in a conspiracy where homebuyers and brokers submitted fraudulent loan applications. Her role included altering or fabricating supporting documents like bank statements and pay stubs. Over three years, she assisted about 450 homebuyers in obtaining unqualified loans totaling approximately $161 million.

Johnson pleaded guilty to one count of conspiracy to defraud the United States and agreed to pay restitution to victims, including HUD. She is scheduled for sentencing on April 11, 2025, before U.S. District Judge Sarah E. Geraghty.

The investigation involves HUD Office of Inspector General, FHFA Office of Inspector General, FDIC Office of Inspector General, and FBI.

Assistant U.S. Attorney Alison Prout is handling prosecution duties.

For more information contact U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.

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