Batavia, Naperville women, five others, charged in mortgage scheme
A Batavia woman is among seven suburban and Chicago residents who face fraud charges alleging they participated in what Cook County prosecutors today called an elaborate mortgage scheme that centered around two residential properties in Chicago’s Englewood and Back of the Yards neighborhoods.
Prosecutors say the defendants devised a plan in which they induced lenders into providing funding for phony real estate transactions, then split the proceeds from the sales. Altogether, prosecutors said, the group shared about $750,000 from three fraudulent transactions.
Gayle Tracy, 50, of the 400 block of North Prairie Street in Batavia, faces 12 charges, including three counts each of conspiracy to commit a financial crime and financial institution fraud; two counts each of organizer of a continuing financial crimes enterprise and theft by deception; and one count each of continuing financial crimes enterprise and money laundering.
Tracy, authorities said, was arrested April 28 and bond was set at $200,000.
Also charged are:
Ÿ Brent Bickhaus, 50, of the 6900 block of West Oakton Court in Niles, on one count each of conspiracy to commit a financial crime, financial institution fraud and money laundering. Bond was set at $75,000.
Ÿ Catherine Denwood, 42, of the 2400 block of Lexington Lane in Naperville, on one count each of theft by deception, conspiracy to commit a financial crime and financial institution fraud. Bond was set at $75,000.
Ÿ Mark Schwarzbach, 43, of the 5N700 block of Pearson Drive in Wayne, on one count each of financial institution fraud and money laundering. Bond was set at $75,000.
Ÿ Richard Simmons, 31, of the 9000 block of South Morgan in Chicago, on three counts each of conspiracy to commit a financial crime and financial institution fraud; two counts of theft by deception; and one count each of continuing a financial crimes enterprise, money laundering and state benefit fraud. Bond was set at $100,000.
Ÿ Lorenzo Crooks, 38, of the 10500 block of South Green Bay Avenue in Chicago, on three counts each of conspiracy to commit a financial crime and financial institution fraud; two counts of theft by deception; and one count of continuing a financial crimes enterprise. Bond was set at $100,000.
Ÿ Frances McCormick, 64, of the 17800 block of Anthony Avenue in Country Club Hills, on two counts each of conspiracy to commit a financial crime and financial institution fraud; and one count each of theft by deception and money laundering. Bond was set at $100,000.
According to prosecutors, Denwood and McCormick would pose as straw buyers of properties controlled through a trust by Tracy and Bickhaus. Crooks would help Denwood and McCormick prepare fake loan application documents and submit them to lenders, authorities said.
Throughout the process, prosecutors said, Simmons acted as a real estate agent, though he does not hold a real estate license. Schwarzbach, authorities said, conducted closings, receiving kickbacks in addition to his normal closing fees.
A judge ordered all the defendants to surrender their passports and provide proof that the money used for bond came from legitimate means. Schwarzbach is next due in court June 30. The remainder of the defendants are scheduled to appear in court July 12.