A Fulton County grand jury has indicted two Georgia men in connection with a reverse mortgage scheme aimed at senior citizens.
Edmund Chatham of Roswell and Steven Connelly of Alpharetta were charged with one count of racketeering for pocketing the proceeds of reverse mortgage loans made to five senior citizens between January 2008 and January 2009, according to a news release from the Attorney General’s office.
Chatham and Connelly, who were indicted Friday, used “fraudulently inflated appraisals” to obtain reverse mortgages for five homeowners, according to the release. They also received “proceeds and fees” from the reverse mortgages when the fraudulently obtained loans closed, according to authorities, “while the senior citizens received little or no money from the refinances.”
If found guilty, Chatham and Connelly could be sentenced to between five and 25 years in prison, and be fined up to $100,000 or three times the amount collected during the scheme, authorities said.
About the Author
