Glenview Woman Among Those Indicted in Mortgage Fraud Scheme

A Glenview woman was one of 11 people indicted in a mortgage fraud scheme that used bogus information to obtain 52 residential mortgages worth $14.5 million.

Constance Paek, 34, of Glenview, was indicted on one count of wire fraud in the scheme, the U.S. Attorney said. According to the indictment, the defendants schemed to obtain fraudulent mortgages by making misrepresentations in loan applications, real estate contracts, and HUD-1 settlement statements, including information about the homebuyers' income, employment, source of down payments and the sale price of the property.

Federal officials said that Ketih Austin, 41, of Broadview, led the scheme. Austin, who owned Icy Investments, Inc. and Kesha & Icy Investments Inc., was charged with six counts of wire fraud, three counts of fraud, one count of aggravated identity theft, and one count of obstruction of justice.

Cesar Marin, 30, of Schaumburg, and Mark Pettis, 57, of Chicago also were charged with obstruction of justice. Marin faces three counts of wire fraud and Pettis one count of wire fraud.

Also indicted were Joseph Bateast, 40, of Bolingbrook, one count of bank fraud; Robert Brown, 37, address unknown, one count of wire fraud and Michael Thill, 54, of Park Ridge, one count of wire fraud. Wilson Titus, 64, of Broadview, three counts of wire fraud and two counts of bank fraud; Clyde Banks, also known as “Charles Barksdale,” 36, address unknown, one count of wire fraud and Steven Gawlik, 41, of Chicago, one count of wire fraud.

Former closing agent Brandie Roberts, 34, of Brookfield was indicted separately on two counts of wire fraud. The indictment seeks forfeiture of $68,366.

Thill, Austin, Paek and Pettis are accused of recruiting property owners to sell their homes, knowing that they intended to falsely inflate the sales price so they could obtain the proceeds of the mortgage, a press release from federal authorities states.

Austin, Titus, Banks and Paek recruited individuals to act as straw buyers by promising that they would not have to use any of their own money, would be paid to attend closings, and would not have to make any subsequent mortgage payments, the U.S. Attorney's stated in a press release.

Each count of wire fraud carries a maximum penalty of 30 years in prison and $1 million fine, with mandatory restitution. The indictment also seeks the forfeiture of $8 million from Austin, Marin, Titus, Banks and Bateast. Also, $6,800 was seized from Austin's home as was his 2007 Lexus LS460.