In the following press release [pages 8 & 9] Mary Beth Buchanan, United States Attorney for the Western District of Pennsylvania announced thay a grand jury returned an indictment charging Kenneth Fox, age 42, of 110 Penn Manor Road, Irwin, Pennsylvania 15642, with participating in a Wire Fraud Conspiracy and a Money Laundering Conspiracy.
The indictment alleges that Fox and another individual operated a closing company called Southwest Settlement Services. As a closing company, Fox and Southwest Settlement Services was charged with paying off liabilities associated with the collateral underlying the loans, like mortgages, in accordance with the lender’s instructions. The indictment alleges that Fox and his co-conspirators did not pay off the mortgages as instructed, but used the money for their own benefit. The indictment further alleges that to conceal their fraud, Fox and his co-conspirators used money from subsequent closings to make mortgage payments and pay off mortgages that should have been paid off through earlier transactions.
Thank you THE MORTGAGE FRAUD REPORTER.