OAK BROOK – A south loop condominium developer and associates are among six defendants facing federal charges for allegedly engaging in a $22.8 million mortgage loan fraud scheme, according to a news release from the Northern District of Illinois Attorney's office.
The defendants include real estate developer Warren Barr, 62 of Riverside, attorney Robert Lattas, 37 of Oak Brook and James Carroll, 63 of Naperville, who was chief financial officer and a member of 13th & State, LLC.
The defendants allegedly caused buyers to fraudulently obtain about 60 mortgages from various lenders to purchase condominiums at Vision on State, a 250-unit building located at 1255 South State St., according to the release.
Barr was charged with nine counts of bank fraud and four counts of making false statements on loan applications in a 13-count indictment that was returned by a federal grand jury May 15.
Lattas was charged with seven counts of bank fraud and three counts of making false statements, and Carroll was charged with one count of bank fraud.
Between March 2007 and July 2012, the defendants allegedly coerced buyers to obtain mortgages to purchase condos at Vision on State by making false statements to lenders in loan applications and settlement statements about the sales price of the units.
According to the indictment, Barr, Lattas and Carroll determined the minimum prices that 13th & State should receive for the condos and facilitated the sale of those units at inflated prices, knowing the difference between the two prices, or “the spread,” would be paid to Aslam, Sanders and others to recruit buyers with incentives that were not disclosed in loan documents.
The indictment also seeks forfeiture of about $23 million from Barr and Lattas.
Barr is believed to be living temporarily in Saudi Arabia and a warrant was issued for his arrest. The other five defendants are scheduled to be arraigned at 10 a.m. Wednesday, or on other dates to be determined, in U.S. District Court, according to the release.
Each count of bank fraud and making false statements on loan applications carries a maximum penalty of 30 years in prison and a $1 million fine, or an alternate fine of twice the loss or twice the gain, according to the release.