Monroe woman pleads guilty to mortgage fraud

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By Danielle Wilson, Staff Writer 6:39 PM Wednesday, July 29, 2009

CINCINNATI — A Monroe woman has entered a guilty plea on mortgage fraud charges in U.S. District Court today, July 29.

Jessica A. Zbacnik, 42, is the sixth person to plead guilty in a 10-count indictment in the “extensive mortgage fraud scheme” affecting 210 residential properties, according to U.S. District Attorney Gregory Lockhart’s office.

The scam took place between March 2002 and June 2008, according to a statement from the office.

She was charged with conspiracy to commit mail fraud, wire fraud and money laundering, and another money laundering charge.

Zbacnik admitted in Judge Michael A. Barrett’s courtroom to operating and controlling real estate mortgage and title insurance-related businesses with the intent to participate in a scheme.

In essence, she had 53 fraudulent real estate closings in the southern district of Ohio netting more than $4 million in fraudulent loans between October 2002 and August 2004. Those fraudulent transactions grossed more than $2.1 million for Zbacnik and her co-conspirators from the Dayton and Cleveland areas, five of whom have pleaded guilty. Zbacnik and company also hid more than $510,000 in cash down payments from lending institutions.

The majority of those properties is in Montgomery County.

The Monroe woman faces a maximum sentence of 30 years in prison, a $1 million fine, five years of supervised release and a mandatory $100 payment to the Clerk of Court for the first count. On the second charge, she could get up to 20 years in prison, a fine of $500,000 or twice the value of the property in the transaction, three years of supervised release and a mandatory $100 payment to the Clerk of Court.

None of the six co-conspirators has been sentenced.

The group reportedly used several business names to do scam unassuming buyers including Commercial Property Advisor Group, Diamond Venture Capital Group, Gem City Professional Services, First Union Appraisals, JMH Real Estate, E&A Investments, E&A Contractors, K M Investments, Midwest Alliance Commercial, K&M Auto Sales LLC, All-City Title Agency Inc., Partners Land Title and NETCO.

Contact this reporter at (513) 705-2511 or dwilson@coxohio.com.

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