Three Marylanders have been indicted for mortgage fraud related to homes in Baltimore's Reservoir Hill neighborhood, federal prosecutors announced Friday.

Kimberly Eileen McMillian, 45, of Baltimore, Olutoyin Oladosu, 53, of Lanham, and Glenroy Emanuel Day, Sr., 73, of Baltimore, were indicted by a grand jury Wednesday on charges of conspiracy to commit and committing wire fraud, the U.S. Attorney's Office for Maryland said in a statement.

McMillian, prosecutors allege, pretended to be a real estate agent representing New York investors interested in buying properties in Baltimore. With the assistance of Oladosu and Day, the government claims, McMillian then submitted loan applications on behalf of fictitious purchasers for four properties in Reservoir Hill — 1204 Clendenin St., 2359 and 2413 McCulloh St. and 2243 Madison Ave. — for which she received $1.1 million in funds.

The defendants' scheme operated in the second half of 2007, prosecutors said. Three of the homes were purchased from a Silver Spring company, Kenonik Real Estate Investments LLC, and the fourth home McMillian owned, according to her indictment.

At the settlement for each property, McMillian told the settlement agent to transfer "a substantial portion of the loan proceeds to her or to businesses associated with Oladosu, either pursuant to an assignment contract or to pay for purported renovations to the property," prosecutors' statement said.

McMillian and Day have been arrested and had their initial appearances in court Friday. They were released under the supervision of federal officials, the U.S. Attorney's Office said. Oladosu is a fugitive, prosecutors said.

Each defendant faces up to 30 years in prison for each of the nine counts charged, the statement said.

steve.kilar@baltsun.com

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