Mary Anne Dean, 60, pleaded guilty to conspiracy to commit wire fraud. Charles Donaldson, a loan officer described as her co-conspirator, pleaded guilty last week.
Dean brokered loans for the "investors" — Donaldson's relatives and acquaintances — by submitting mortgage applications with inflated income and other false information, according to their plea agreements. Donaldson promised participants that he would hold most of the homeowners' equity in an escrow account to help with the payments.
Instead, Donaldson spent much of the homeowners' equity, according to the plea agreement. That left both the investors and the former homeowners in dire straits, unable to make payments. Thirteen homes have been taken back by lenders and three more are tied up in foreclosure proceedings, the Maryland U.S. attorney's office said.
Dean and Donaldson are scheduled for sentencing in January. The maximum punishment is 20 years in prison and a $250,000 fine.