2 men plead guilty in mortgage fraud scheme

NASHVILLE, Tenn. (AP) -- Two Sumner County men have pleaded guilty to a mortgage fraud scheme that resulted in more than $2.2 million in losses to lenders.

Meanwhile, a couple has been indicted in Nashville on wire fraud and bank fraud charges as part of a nationwide initiative to prosecute mortgage and fraud perpetrated against lending institutions.

The U.S. Attorney's office in Nashville says Miles J. Black and Jeffrey D. Hathcock entered their pleas in federal court on Thursday. The trial of a third defendant, Harold Stafford, has been rescheduled for September.

The men are charged with conspiracy to commit wire fraud and bank fraud.

The scheme involved the purchase of more than 20 luxury homes in Hendersonville and Gallatin by unqualified straw buyers.

Meantime, Fred and Pamela Holder were indicted on charges that they engaged in a mortgage fraud scheme that involved the purchase of a luxury home in Hendersonville by an unqualified buyer.

They are accused of overstating the buyer's income and assets, and using some of the resulting loan proceeds to buy jewelry and property.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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