Smith Sentenced to 5 Years in Prison
CLEVELAND – Carol Smith pleaded guilty to 13 felony charges for committing mortgage fraud involving $2,924,000 in loans on three houses in Solon. After entering her guilty plea on Wednesday, July 1, 2009, she was sentenced to five years in prison.
Carol Smith, her daughter, Sharon Cox, and Elaine Gaither fraudulently purchased a Solon home at 38515 Flanders for $575,000. Marilyn Brookins, 46, of Twinsburg, fraudulently purchased the Solon home, falsely stated her annual income and position of work. Brookins inflated her gross monthly rental income by submitting seven false leases to Meritage Mortgage Corporation, along with listing her primary residence as a rental property. Three of the properties were subsidized by the Cuyahoga County Metropolitan Housing Authority. Brookins signed and submitted an Affidavit and Agreement of Occupancy Statement when she did not occupy nor have any intention of occupying the residence. She illegally received $30,000 from the deal.
Carol Smith, 68, of Aurora, arranged to have a realtor, Elaine Gaither, 70, of Oakwood Village, prepare and enter into an Exclusive Right to Sell Contract and an Agency Disclosure Statement to make the deal appear legitimate. Smith knew that the contract would never be executed since the house was sold to Brookins. The house fell into mortgage foreclosure and was sold at Sheriff’s sale for $300,000 in November 2008. The Solon Police Department led the investigation. Brookins and Cox’s cases are pending.
Carolyn Turbeville, 51, of Solon, with assistance of five others, fraudulently obtained a $490,000 loan from Meritage Mortgage to purchase a house at 7234 Liberty Road in Solon. Turbeville submitted five false rental lease agreements to inflate her income and signed an affidavit and agreement of occupancy statement, but never lived in the house. Carol Smith faxed false loan documents to the lender from her office. At closing, Turbeville received $37,000, and Sharon Cox, the daughter of Carol Smith, received $35,500, of which Carol Smith received $9,500. Tuberville and Cox’s cases are pending.
Carol Smith orchestrated a scam to purchase a newly built house at 35900 Sedge Circle in Solon for $495,000. Arnold Patterson, 65, of Cleveland, falsely obtained a $495,000 loan from Argent Mortgage to purchase the Solon house. Patterson signed and submitted a false loan application which he stated he was a supervisor earning $106,944 annually. Patterson actually earned $43,337.80 working as a repairman for the Cleveland Water Department.
Patterson also inflated his monthly rental lease payments by $275 a month and signed a false promissory note which he never repaid, as well as signing two different HUD statements. Smith, who set up the scam, also claimed to have had $125,000 worth of home improvements done though the house was newly built. Smith received a check for $2,216.99 which was part of $64,500 disbursed at closing.
Smith sent the money to Patterson and Cox. At closing, Patterson received $20,000, Cox $32,283.01, and Watkins $10,000. Cox also opened a telephone account using personal identification information of a friend without her approval. The remaining balance of the bogus $125,000 home improvements was used to inflate the value of the house to flip it a second time.
Approximately a year later, Patterson sold the house to Curtis Bloxson. Bloxson, 50, of Cleveland, obtained a $565,000 loan from Meritage Mortgage by submitting a false loan application. Bloxson claimed to be a supervisor earning $168,000 at Sunoco Logistics but actually he worked in the company's warehouse and was earning $51,000 a year. Bloxson also signed an occupancy clause when he never lived in the house. At closing, Sharon Cox received a disbursement check for $39,701.33 but was not involved in the purchase or the sale of the house. She then wired $24,000 to Bloxson’s Federal Credit Union Account. Carol Smith prepared and submitted the false information on the deal to the lender.
Additionally, Arnold Patterson was fraudulently relieved of paying $10,551 in delinquent property taxes, which were illegally paid out of escrow at closing. Kasib Husain, 41, of Cleveland, prepared and sent via fax a false request for verification of rent in Bloxson’s name. This included falsely reporting a length of rental at 3644 East 151st, rental and rental payment at 35905 Brushwood in Solon. The other defendants’ cases are pending.
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