Jun.25, 2010, 02:52 AM

A former Gahanna mortgage broker pleaded guilty to bank fraud and money laundering in federal court yesterday after admitting that he helped falsify loan applications and took kickbacks.

The U.S. attorney's office said Ryan K. Blankenship, 42, defrauded National City Bank, MortgageIT and First Magnus of $70,000 to $120,000 between September 2006 and September 2007.

Special Agent David Gosiewski of the Internal Revenue Service described the scheme during a hearing in U.S. District Court in Columbus.

Gosiewski said Blankenship owned Household Mortgage Solutions in Gahanna and helped fill out fraudulent loan applications to submit to lenders for four properties.

For properties at 360 S. Roosevelt Ave. in Bexley and 1018 Greythorne Place, Blankenship obtained kickbacks for the buyers and submitted loan applications with false income amounts, Gosiewski said.

In two other cases, Blankenship obtained illegal profits from sellers. He received a "finder's fee" of $8,000 for property at 752 Noe-Bixby Rd. and a kickback of $17,000 from a property at 9444 Slough Rd. in Canal Winchester.

Under a plea agreement, Blankenship must pay restitution of up to $120,000.

The bank-fraud charge against Blankenship carries a maximum penalty of 30 years in prison and a $1 million fine. The money-laundering charge carries a maximum penalty of 10 years in prison and a $250,000 fine.

Judge John D. Holschuh ordered a presentence investigation before accepting the plea agreement and sentencing Blankenship. The judge released him on his own recognizance.

Gosiewski said Blankenship's case is one of many being investigated by a local mortgage task force made up of the Ohio attorney general's office, the IRS, Columbus police and the federal Department of Housing and Urban Development.

Assistant U.S. Attorney Brenda S. Shoemaker said the scheme Blankenship was involved with is still under investigation.