Two Region Men Get Federal Prison Terms for Mortgage Fraud
November 22, 2013 — The U.S. Attorney’s Office in Hammond says two local men have federal prison sentences today for mortgage fraud in the Region.
U.S. Attorney David Capp says 47-year-old Jeffrey Youngheim of Portage and 52-year-old Richard Loveless of Gary have jail terms after their “guilty” pleas in the case US v Chandler et al.
Court records say Youngheim and Loveless both pleaded guilty to felony wire fraud, earning Youngheim a 21-month prison term and a $100,000 fine, getting Loveless 15 months of imprisonment and a $50,000 fine.
Capp’s office says, “According to documents filed in this case, Youngheim participated in a large-scale mortgage fraud scheme designed to unjustly enrich himself and his business partner Loveless (among others) to the detriment of neighboring homeowners in Gary, Indiana and taxpayers generally. Individuals who were recruited to buy most of the houses sold in the scheme were first-time home buyers with little practical experience in the field of real estate and with limited to no familiarity with the Gary, Indiana real estate market. Nearly everything said to induce buyers to buy these houses was a lie. They were told the houses were good investments when in fact they were in disrepair. They were told the houses would be rehabilitated when in fact few, if any, of the necessary repairs were actually completed. Little effort was made to keep the promises after the first month or two of mortgage payments had been made. Youngheim and Loveless, and/or a trust held for the benefit of their joint business, Property Liquidators, Inc., owned five of the 25 properties sold in the scheme.”
The case resulted from an investigation by the Federal Bureau of Investigation, prosecuted by Assistant United States Attorney Jill Koster.