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 false documents and information. Many of these loans were insured by the Federal Housing Administration (FHA), leading to claims 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 commitment to prosecuting individuals who exploit the system for personal gain.
Special Agent-in-Charge Jerome Winkle from HUD’s Office of Inspector General commented on Johnson’s actions, noting she fabricated documents to falsely qualify individuals for loans. “When individuals commit fraud against federally funded programs, it creates significant risks,” he said.
Edwin S. Bonano, Special Agent in Charge of FHFA-OIG’s Southeast Region, highlighted the importance of collaboration between law enforcement partners in such cases. “This case highlights the importance of collaboration between our law enforcement partners to protect the integrity of the housing market,” he remarked.
Kyle A. Myles from FDIC OIG explained Johnson’s role in altering and fabricating documents as part of a scheme that led to approximately 450 fraudulent mortgage loan approvals. He affirmed their commitment to investigating fraudulent acts threatening financial systems’ safety.
Sean Burke, Acting Special Agent in Charge of FBI Atlanta, assured that the FBI would continue investigating offenses impacting residential mortgage market integrity. “Johnson had the duty to conduct business honestly but instead chose to engage in mortgage fraud,” he stated.
According to U.S. Attorney Buchanan, Johnson was involved in a conspiracy where homebuyers and brokers submitted fraudulent applications to secure mortgages. Her role included altering or fabricating necessary documents like bank statements and pay stubs. The fraudulent loans amounted to about $161 million, with many already defaulted.
Johnson pleaded guilty to one count of conspiracy to defraud the United States and agreed to pay restitution, including compensation to HUD. She is set for sentencing on April 11, 2025, before U.S. District Judge Sarah E. Geraghty.
The investigation involves multiple agencies: 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 this case.
For further details or inquiries, contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016.
