Insurance agent pleads guilty in mortgage fraud case

This is the case of insurance agent that commiting a fraud scheme. A self-employed insurance agent admitted guilt for his role in a $12.6 million mortgage fraud scheme that encompassed 25 residential properties in Lee’s Summit and Raymore. Ronald Brown, 39, of Gladstone, pleaded guilty on Thursday in U.S. District Court in Kansas City of defrauding mortgage lenders from June 2005 to May 2007, for which he was indicted on Oct. 29. Federal prosecutors accused Brown of participating with more than 12 others in buying and flipping new homes in upscale subdivisions in Lee’s Summit and Raymore. The homes would be bought at inflated prices caused by fraudulent mortgage applications, and then the conspirators would skim the extra proceeds. Brown worked as an insurance agent for The Brown Insurance Agency in Kansas City, Kan., and obtained insurance for the properties in question by using fake Social Security numbers. Brown faces as much as five years in federal prison and fines of as much as $250,000 and restitution. Sentencing has not yet been scheduled.