A Baltimore man pleaded guilty in federal court Friday to conspiracy to commit wire fraud because he and others secured mortgages for six homes in Upper Fells Point with fraudulent information, prosecutors announced.
Kenneth Koehler, 42, and his co-conspirators caused losses of more than $1 million to mortgage lenders because all six homes they purchased subsequently went into foreclosure, according to a statement from the Maryland U.S. Attorney's Office.
From 2006 through 2008, Koehler, his former business partner and several other individuals obtained mortgages for these properties in two fraudulent ways: creating a fictitious employer that could verify made-up borrower income information and concealing from lenders the actual purchase prices for some properties.
About 90 percent of the losses caused by the scheme were suffered by government-sponsored lenders Fannie Mae and Freddie Mac.
Koehler's sentencing is scheduled for January. He face a maximum sentence of 20 years in prison and a $250,000 fine.