SACRAMENTO (AP) - A federal grand jury has indicted five Sacramento-area residents on mortgage fraud allegations.
The five are charged with defrauding lenders by submitting fake loan applications for dozens of homes. They were indicted Thursday.
Prosecutors say Sheryl Hayden and her husband, Robert Martinson,
both of Newcastle, were trying to unload investment properties as the housing market cooled.
They allegedly enlisted the help of loan processors Rick and Melissa Villegas of Sacramento and Kathleen Delapp of Auburn.
Their attorneys could not be reached to comment Saturday.
The indictments allege the fraud included kickbacks to fake buyers and forged signatures on applications.
Victims included Aegis Mortgage and IndyMac Bank, a federally insured financial institution.
(Copyright 2008 by The Associated Press. All Rights Reserved.)