Gambrills, Severn Residents Indicted in Mortgage Fraud Scheme

Three county residents were among those indicted last week in a case involving as much as $3.5 million in fraudulently obtained mortgage loans.

A federal grand jury handed out indictments to a total of six defendants, alleging that they conspired to falsify documents and inflate appraisals to induce lenders to provide them with housing loans.

The defendants include Edgar Tibakweitira, 44, and Flavia Makundi, 41, from Severn; and Carmen Johnson, 46, of Gambrills. 

The indictment alleges that Tibakweitira served as a real estate agent and recruited Makundi, his wife, and others to serve as straw purchasers of the homes. 

The grand jury determined that the scheme resulted in $1 million in losses to the lenders as well as the Federal Housing Administration, Fannie Mae and Freddie Mac. 

All of the defendants could face up to 30 years in prison and a $1 million fine related to the conspiracy charge. They could get an additional two years in jail if convicted on identity theft charges. 

Officials said last week’s indictment came as a result of efforts from the Financial Fraud Enforcement Task Force, formed in 2009 following the collapse of the housing and financial market.