By Lou Grieco | Thursday, December 10, 2009, 03:36 PM Dayton Daily News
CINCINNATI — A former Centerville man was sentenced Thursday, Dec. 10, to 33 months in federal prison for his role in an extensive mortgage fraud scheme that affected 210 residential properties, including 205 in Montgomery County.
Julian M. Hickman, 32, now of East Cleveland, appeared before U.S. District Judge Michael Barrett. He is the second of six co-defendants to be sentenced. The first, Jessica A. Zbacnik, was sentenced Dec. 3 by Barrett to 30 months in prison.
The scheme affected 63 investors and led to foreclosure against owners of more than 90 percent of the properties, according to Carter M. Stewart, U.S. Attorney for the Southern District of Ohio.
Hickman pleaded guilty in December 2008 to two counts of conspiracy and three counts of willful failure to file income tax returns.
In a statement of facts filed with his plea, Hickman admitted that, between March 2002 and June 2008, he and others recruited unsuspecting individuals to buy residential properties, many of them dilapidated, at prices artificially inflated above legitimate fair-market values.
Hickman admitted that he participated in 107 separate fraudulent real estate closings between March 2002 and June 2006. Hickman and his co-conspirators netted more than $3.8 million from the deals.
Hickman failed to file federal income tax returns in 2003, 2004 and 2005. In 2003, Hickman received gross income in excess of $680,000. In 2004, Hickman received gross income in excess of $830,000. In 2005, Hickman received gross income in excess of $200,000.
Zbacnik, 42, of Mason, pleaded guilty July 29 to one count of conspiracy to commit money laundering and one count of conspiracy to commit mail fraud, wire fraud and money laundering.
According to the statement of facts filed in court, Zbacnik admitted that she had helped arrange, facilitate and manipulate documents associated with real estate sales and closings. The purpose was to fraudulently obtain excess mortgage loan proceeds generated from the sale of residential properties.
There are four co-conspirators who are still awaiting sentencing:
— Edward McGee, 74, of Dayton, who pleaded guilty on May 12, 2009 to conspiracy to commit money laundering.
— Kenneth O. McGee, 49, of Dayton, son of Edward, who pleaded guilty May 12, 2009 to conspiracy to commit mail fraud, wire fraud and money laundering and conspiracy to commit money laundering.
— Robert Mitchell, 42, of Vandalia, who pleaded guilty to conspiracy to commit mail fraud, wire fraud and money laundering and conspiracy to commit money laundering on March 11, 2009.
— Kamal J. Gregory, 34, of Centerville, who pleaded guilty to conspiracy to commit mail fraud, wire fraud and money laundering and conspiracy to commit money laundering on April 14, 2009.
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