Osborne and Seven Others Face $40M Mortgage Fraud Charges

STEVEN M. DETTELBACH and STEPHEN D. ANTHONY have announced a major crackdown on mortgage fraud, with eight individuals facing charges for their involvement in a $40 million scheme that spanned the Florida Gulf Coast. The accused, including Ileana E. Osborne of Santa Rosa Beach and Kyle F. Conrad of Hartville, Ohio, are alleged to have used straw buyers and false statements to obtain massive home mortgage loans.

Osborne, 44, is charged alongside seven others for orchestrating a complex fraud involving dozens of properties. The indictment details fraudulent activities that took place between 2004 and 2006, when Osborne operated a mortgage brokerage company and consulting firm. Alongside her is Jack R. Coppenger, currently serving a 10-year sentence in federal prison for his part in the scheme.

The defendants are accused of using straw buyers to apply for mortgages with false statements and omissions that concealed the true nature of the transactions. Osborne, as a licensed mortgage broker, filled out loan applications with falsified income amounts and claimed properties would be used as second residences, despite knowing these claims were fraudulent.

Jon R. Jacobson, 50, of North Canton, Ohio, and Harry S. Kaplan, 50, of Hillsboro Beach, Fla., are among those named in the 45-count indictment. The scheme is said to have involved over $40 million in fraudulent loans, many now in default or foreclosure.

In addition to Osborne’s role in the primary conspiracy, she faces charges related to a separate bank fraud conspiracy in 2006, which resulted in an additional loss of approximately $5 million and involved four properties in Santa Rosa Beach, Fla.

This investigation highlights the sophisticated nature of organized mortgage fraud schemes, with repercussions felt across state lines. The accused face serious penalties if convicted.