Goshen News, Goshen, IN

Breaking News

Local News

May 17, 2008

Officer charged in mortgage loan scam

SOUTH BEND, Ind. — A veteran police officer has pleaded guilty to federal bank fraud charges for his role in an elaborate mortgage fraud scheme that bilked lenders out of hundreds of thousands of dollars.

Sgt. Robert Culp, who has served on the South Bend Police Department for 17 years, was relieved of duty with pay Friday after entering a guilty plea in federal court in South Bend.

Culp, 43, of New Carlisle, was involved in a scheme between 2003 and 2007 that bought dilapidated houses and sold them at two or three times their actual value, according to federal court documents.

Investigators said Culp sold more than 190 homes in the South Bend area.

But the sales ere made to “straw purchasers” — individuals recruited by Culp and accomplices to purchase the homes at the inflated price, according to Culp’s petition to plead guilty.

For agreeing to buy the home at a highly inflated price, the straw purchaser was told that he would receive 20 percent of the mortgage loan back, and that Culp and associates would cover the closing costs on the purchase.

In some cases, Culp also agreed to pay the first year’s mortgage or to find tenants for the property.

Culp, according to his plea, said that once a straw purchaser was found, he would work with two local loan agents to secure mortgages from Wells Fargo and other lenders.

The mortgages — usually made at 80 to 90 percent of the reported purchase price — would then be divided up among Culp, the local agents, Culp’s accomplices and the home’s purchaser, who usually received about 20 percent of the home’s sale price back.

For each home sold, Culp estimated that he made between $5,000 and $7,000.

Culp wrote that he and accomplices would also help pay the closing costs on the home, and would often inflate the purchaser’s assets on the mortgage application.

He could have faced up to 30 years in prison and a million dollar fine before the agreement.

But in his plea he agreed to pay full restitution and will continue to cooperate with federal prosecutors, including testifying in a grand jury investigation in exchange for a recommendation for a lesser sentence.

Text Only
Local News
  • super bowl measles Super Bowl fans warned about measles outbreak

    East Coast fans who left the Super Bowl host city feeling good about Hoosier hospitality may have been exposed to something less welcome: The measles.

    February 9, 2012 1 Photo

  • Toledo Symphony concert Toledo Symphony, Goshen College choirs in concert Feb. 19

     The Toledo Symphony Orchestra and Goshen College choirs will come together under the direction of Grammy award-winning conductor and Goshen College alumnus Vance George for a Feb. 19 show.

    February 9, 2012 1 Photo

  • Seussical 'Seussical' debuts Friday

    Joel Lininger is a 15-year-old boy. He’s also been Tom Sawyer and the King of Hearts. Currently, he’s The Cat in the Hat.

    February 9, 2012 1 Photo

  • WGCS station Student radio station up for national awards

    The Goshen College radion station, WGCS, 91.1, The Globe, has been nominated for 15 broadcasting awards by the Intercollegiate Broadcasting System.

    February 9, 2012 1 Photo

  • housing authority Council bailout of housing authority not a done deal

    Supporters of a $571,050 plan to bailout the Goshen Housing Authority and put the agency back on solid footing left Tuesday’s City Council meeting with new optimism, according to some people who attended the meeting.

    February 9, 2012 1 Photo

  • winter guard Goshen winter guard members preparing for their big show

    Members of the Goshen High School Winter Guard are working hard in preparation for their last regular season invitational. And that event will be a big one.

    February 9, 2012 1 Photo

  • walmart vehicle 2 Police have suspects in theft of charity containers at Walmarts

    According to a report by the Elkhart County Sheriff’s Department, suspects in the recent thefts of donation containers at local Walmart stores have been identified.

    February 8, 2012 1 Photo

  • Barn artist in Elkhart Museum programs to focus on barns

    Two events focusing on historic barns are planned at the Midwest Museum of American Art, 429 S. Main St., Elkhart:

    February 8, 2012 1 Photo

  • Middlebury Town Hall New library rental fees set

    The Middlebury Town Council amended the Middlebury Public Library's community room use policy Monday, with the primary change being an increase in rental fees for the library's three community rooms.

    February 8, 2012 1 Photo

  • NorthWood Scholastic Art Winners Local artists win at regionals

    Five NorthWood High School students won at the 2012 Northwest Indiana & Lower Southwest Michigan Region of The Alliance for Young Writers & Artists. 

    February 8, 2012 1 Photo

Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Poll

Gov. Mitch Daniels signed the right-to-work bill into law Feb. 1, allowing Indiana workers to opt out of paying mandatory union dues at union shops. What effect do you feel the new law will have on Indiana in the future?

RTW will attract more business to the state
RTW will hurt workers by reducing wages
RTW will both attact business and reduce wages
There will be no major impact
     View Results
Community Calendar
Loading…
Events by eviesays.com
AP Video
Obama Gives Education Waivers to 10 States Giffords Aide to Run for Her Seat LA School in Sex Abuse Scandal Reopens Winter Slamming North Asia, Parts of Europe Syrian Forces Renew Bombardment of Homs States, Banks Reach Foreclosure-abuse Settlement Raw Video: Italy's Mount Etna Bursts Into Life Greeks March; Angry Despite Debt Deal Raw Video: U.S. Pullout Celebration Raw Video: Annual Empire State Building Run-Up Man Killed in Courthouse Shootout Video of Ga. Man Who Killed Girl Released Air Force Airlines: Leaders Get Polished Service Ga Girl Fights Off Kidnapper at Walmart Nevada Highway Patrol, City Settle Beating Case Homs Bombardment Continues, Global Outcry Grows Raw Video: Dog Rescued From Icy Colo. Water Skip the Coffee Cup and Inhale Your Caffeine Fix