Iowa woman and Missouri man plead guilty to mortgage fraud scheme

KANSAS CITY, Kan. (AP) - A Missouri man and an Iowa woman have pleaded guilty to a scheme to defraud mortgage lenders for $3 million.

The U.S. Attorney's Office in Kansas said Thursday that 31-year-old Anthony E. Carollo of Raytown, Mo., and 25-year-old Rebecca Gelwix of Des Moines each pleaded guilty to one count of conspiracy to commit bank fraud, money laundering and wire fraud.

They admitted participating in a scheme where straw buyers would seek to buy homes that were for sale by owners and then obtain financing through falsified loan applications.

Carollo provided false verification of employment for the straw buyers to lenders. Gelwix was one of the straw buyers.

They're scheduled for sentencing on Nov. 16.

Copyright 2009 The Associated Press.

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