(Source: bgdailynews.com) The former owner of a company involved in the short sales of houses subject to foreclosure admitted in court Friday to defrauding the Federal Housing Administration.
Deena Brooks pleaded guilty in U.S. District Court in Louisville to a count of making a false statement or report to the FHA.
The case against Brooks was unsealed Friday.
Brooks was the president and sole owner and operator of Kentucky Promise and also controlled Bluegrass Default Services in Bowling Green.
In an information charging her with the offense, the U.S. Attorney’s Office for the Western District of Kentucky claimed that Brooks submitted fraudulent documents and made false statements to the FHA from 2008-2012 regarding 19 properties in Bowling Green.
Brooks was alleged to have solicited homeowners who defaulted on FHA-guaranteed loans to participate in the federal Housing and Urban Development’s Pre-Foreclosure Sale Program, which allows borrowers in default to sell their homes and use the proceeds to satisfy mortgage debt...