Kimberly Johnson has admitted guilt in a mortgage fraud scheme that spanned over three years, resulting in the approval of around 450 loans based on false documents and information. Many of these loans were insured by the Federal Housing Administration (FHA), leading to claims for defaulted mortgages.
U.S. Attorney Ryan Buchanan stated, "The defendant and her co-conspirators brazenly manipulated the real estate lending process out of sheer greed." He emphasized the threat such fraud poses to the real estate market's stability and affirmed his office's commitment to prosecuting those who exploit the system.
Special Agent-in-Charge Jerome Winkle from HUD's Office of Inspector General remarked, "Kimberly Johnson engaged in a massive mortgage fraud scheme, fabricating material documents on over 450 loans." He highlighted the risks posed to federally funded programs by such fraudulent activities.
Edwin S. Bonano from FHFA-OIG noted that Johnson’s guilty plea underscores their dedication to holding accountable those who misuse the mortgage lending system. He pointed out that this case demonstrates effective collaboration among law enforcement agencies to protect housing market integrity.
Kyle A. Myles from FDIC OIG explained that Johnson pleaded guilty for altering and fabricating documents as part of a scheme involving approximately 450 fraudulent mortgage loan applications. The FDIC OIG remains committed to investigating fraudulent acts threatening financial system safety.
Sean Burke, Acting Special Agent in Charge of FBI Atlanta, asserted that "The FBI will vigorously investigate criminal offenses that impact the integrity of the residential mortgage market." He acknowledged cooperation with law enforcement partners in prosecuting misconduct like Johnson's.
Court records reveal that Kimberly Johnson conspired with homebuyers and brokers to submit fraudulent loan applications, altering supporting documents like bank statements and pay stubs. This led to about $161 million in fraudulent loans, many now defaulted.
Johnson, aged 55 from Hampton, Georgia, pleaded guilty to conspiracy to defraud the United States. She agreed to pay restitution including compensation to HUD. Her sentencing is set for April 11, 2025, before U.S. District Judge Sarah E. Geraghty.
The investigation involves multiple agencies: HUD OIG, FHFA OIG, FDIC OIG, and FBI. Assistant U.S. Attorney Alison Prout is handling prosecution duties.
For more details contact U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. Visit http://www.justice.gov/usao-ndga for additional information about the U.S. Attorney’s Office for Northern District of Georgia.