7 in Chicago indicted on mortgage fraud charges

Federal authorities say seven people have been indicted in a mortgage loan fraud scheme worth more than $8.8 million.

Federal prosecutors allege the group fraudulently obtained about 35 mortgage loans from various lenders to buy condominium units in a building on Chicago’s Michigan Avenue. Prosecutors say the defendants disbursed the money among themselves and companies that they owned or controlled.

The defendants are charged with multiple counts of wire fraud. A federal grand jury handed down the indictment Wednesday. Federal authorities say the charges are part of continuing efforts to investigate mortgage fraud in northern Illinois.

The seven defendants will be arraigned later.