Jun.25, 2010, 9:11am EDT

Three Central Ohioans could face prison if convicted on charges tied to an alleged $1.3 million mortgage fraud scheme.

The U.S. Attorney’s office said a federal grand jury this week indicted Lancaster residents Scott M. Gaib, 38; his wife, Erica, 37; and Scott Gaib’s brother Wayne, a 40-year-old Canal Winchester resident. The trio is accused of securing more than $1 million from banks to buy or refinance eight properties in Central Ohio between January 2005 and June 2007.

Officials allege the Gaibs exaggerated the value of the properties and their own creditworthiness to secure the loans.

The three face conspiracy, wire fraud and money laundering charges.

A conviction on conspiracy carries up to five years in prison, while money laundering and wire fraud convictions carry maximum penalties of 10 and 30 years in jail, respectively.