Medina Mortgage Scheme Nets Five in $4.1M Fraud

MEDINA & GATES MILLS, OH – A brazen $4.1 million mortgage fraud scheme targeting luxury homes in Medina and Gates Mills has landed five individuals in federal court, according to a recent indictment filed by the U.S. Attorney’s Office for the Northern District of Ohio. The scheme, allegedly orchestrated to alleviate mounting financial pressures, involved inflating property values and manipulating loan officers, authorities say.

The seven-count indictment charges the defendants with one count of conspiracy to commit bank fraud and wire fraud, one count of conspiracy to commit bank fraud, and five counts of bank fraud. Those charged are: Thomas G. France, age 43, of Strongsville; Katen S. Pabley, a.k.a. Keith Pabley, age 40, of Shaker Heights; Su Chi Straka, age 37, of Parma; Lisa R. Nagle, age 42, of Houston, Texas; and, Ranjeet Pabley, age 67, of Lombard, Illinois. Additionally, Joseph Beccia, age 60, of Parma; and, Alex Blackmore, age 49, of Bronx, New York, were previously charged via information.

The indictment details how Joseph Beccia, owner of Horizon Construction, built six luxury properties in Medina between May 2006 and June 20, 2007. Facing financial hardship as the properties remained unsold, Beccia allegedly partnered with France, a local real estate agent, and Joseph Jones, a previously convicted mortgage fraudster. France connected Beccia with Jones, who promised a system to sell the homes and alleviate Beccia’s debt. The scheme hinged on recruiting straw buyers and inflating the purchase prices of the properties.

According to the indictment, Jones and France instructed Beccia to temporarily remove the properties from the market and relist them at significantly higher prices. They assured Beccia they would handle the loan applications and interactions with lenders. Beccia, in turn, agreed to participate in the inflated sales and sign off on the loan documents. The indictment alleges that Beccia specified the amount of money needed to cover his construction costs, and Jones then added his own desired profit margin, creating the basis for the inflated purchase agreements.

These inflated agreements were then allegedly passed on to Straka and Nagel, who are accused of providing fraudulent appraisal reports to justify the artificially high prices. Specifically, the indictment lists the properties and their initial listing prices: 2940 Sutton Lane, Medina for $599,000 (August 30, 2006); 4281 Fox Glen Drive, Medina for $395,000 (May 13, 2005); 4320 Perian Court, Medina for $399,000 (November 9, 2005); 3006 Sutton Lane, Medina for $529,500 (August 30, 2006); and, 4740 Lake Forest Trial, Medina for $925,000 (August 30, 2006). Jones then enlisted K. Pabley and Blackmore to act as straw buyers/investors.

The investigation, led by Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, continues to unravel the full extent of the scheme. While details remain scarce regarding the specific roles of K. Pabley and Blackmore, their involvement as straw buyers suggests a calculated effort to conceal the true nature of the transactions. The case serves as a stark reminder of the ongoing threat of mortgage fraud and the lengths to which individuals will go to profit from illicit schemes, leaving a trail of financial devastation in their wake.