A federal grand jury has indicted four Lee’s Summit residents and 13 others in a $12.6 million mortgage fraud scheme that involves 25 residential properties in Lee’s Summit and Raymore.

A federal grand jury has indicted four Lee’s Summit residents and 13 others in a $12.6 million mortgage fraud scheme that involves 25 residential properties in Lee’s Summit and Raymore.

Angela R. Clark, 40, James F. Simpson, 39, Cynthia D. Jordan, 41, and Stefan M. Guerra, 30, all of Lee’s Summit, were charged in a 34-count indictment returned by a federal grand jury in Kansas City.

Others charged were Ronald E. Brown, Jr., 39, of Gladstone; Enrico J. McClain, 36, of Kansas City; Daryle A. Edwards, 37, and Leon T. Jones, 42, both of Olathe, Kan.; Gerald D. Williams, 47, and his wife, Judith E. Williams, 47, both of Omaha; Willie Charles Cadenhead, Jr., 38, of Grandview;   Jerome Shade Howard, 39, of Anaheim, Calif.; Michael Conrad Smith, 47, of Lancaster, Calif.; Cheryl Ann Romero, 50, of Santa Fe Springs, Calif.; Anahit Nshanian, 29, of Long Beach, Calif.; Mark Whitney Jackson, 48, of Woodland Hills, Calif.; and Steven M. Salas, 35, of Hacienda Heights, Calif.

“This is one of the largest mortgage fraud cases ever prosecuted in our district, and illustrates that this is a problem that affects not only low-income neighborhoods, but also more affluent suburbs,” said U.S. Attorney John Wood in a statement.

Today’s indictment alleges that Clark, a real estate agent, along with Jordan and Guerra, former mortgage loan officers at separate Lee’s Summit firms, were involved in a conspiracy with 14 property buyers – including six California residents – to defraud mortgage lenders from June 2005 to May 2007.

According to the indictment, the defendants were involved in buying and selling new homes in the Raintree and Belmont Farms subdivisions of Lee’s Summit and the Eagle Glen subdivision in Raymore. Buyers allegedly purchased the homes at inflated prices, obtaining mortgage loans by providing false information to mortgage lenders, then keeping the extra proceeds.

Buyers created shell companies for the purpose of receiving those kickbacks from builder Jerry Emerick, doing business as Ty Construction and Residential Contracting LLC, the indictment says, with kickbacks ranging from $60,000 to $125,000 on each house. Emerick will be charged separately for his role in the scheme.