The Eagle-Gazette Staff • January 7, 2011

http://www.lancastereaglegazette.com/article/20110107/NEWS01/101070312

COLUMBUS -- A Fairfield County couple each will spend more than a year in prison for their involvement in a $1.3 million mortgage fraud scheme involving central Ohio homes.

Scott M. Gaib, 38, was sentenced by U.S. District Court Judge Gregory L. Frost to 18 months for conspiracy and money laundering.

Erica S. Gaib, 37, will spend a year and a day in prison for money laundering. Erica Gaib and Scott Gaib are married.

The Gaibs pleaded guilty in September after reaching agreements with federal prosecutors. As part of the agreements, the other charges against Scott Gaib and Erica Gaib were dropped.

The scheme involved buying residential properties around central Ohio in 2005, 2006 and 2007.

The homes were in Canal Winchester, Columbus, Delaware, Dublin, Powell, Upper Arlington and Westerville.

They would use exaggerated and inflated real-estate appraisals to document the worth of properties involved to prospective lending institutions, according to a statement of facts presented during their plea hearing last September.

Frost ordered Erica Gaib to report to prison Feb. 28 and Scott Gaib to report to prison Nov. 28.

"Provided Erica does not get into trouble while serving time, she could get out in nine months," Frost said.

She could get out of prison just as Scott Gaib is entering the prison, which will allow one of them to be present to help raise their two children, Frost said.

Frost also ordered them to pay restitution, and both will serve three years' probation when they are released from prison.

Scott's brother, Wayne Gaib, of Canal Winchester, was sentenced in October to one day in prison and a year and a day in a halfway house on one count of money laundering for his part in the scheme.