Apr.22, 2010, 11:06 PM, Source: The Kansas City Star

Two Kansas City area men pleaded guilty Thursday to participating in a $23 million mortgage fraud scheme.

The criminal activity involving 350 residential properties is among the largest mortgage fraud cases prosecuted in the area, said U.S. Attorney Beth Phillips.

Nathan N. Anderson, 32, of Grain Valley, and Kyle J. Wine, 29, of Lee’s Summit, pleaded guilty in U.S. District Court in Kansas City to money laundering and conspiracy to transport fraudulently obtained money across state lines.

The charges allege that Anderson and Wine conspired with Wine’s brother, Jeffrey Tyler Wine, who previously was convicted on similar charges and sentenced to five years in federal prison.

From 2002 to 2005, the men provided false information or concealed information from mortgage lenders to obtain loans for residential properties for the purpose of reselling them to investors, according to court documents.

Those investors, solicited through newspaper ads, also were deceived with false information and promises, according to the charges.

The transactions involved companies that operated or were employed by Sunrise Equities, AMIC and Real Estate Holdings Inc.

According to the court documents, Anderson was responsible for securing more than $18 million in loans for 264 properties, and Kyle Wine was involved in transactions involving 86 properties and about $4.4 million.

The money laundering charge is punishable by up to 10 years in prison. The conspiracy charge carries a maximum sentence of five years. Sentencing will be scheduled later.