Six people have been indicted on federal charges involving an alleged $3.5 million mortgage fraud scheme while working for the Lighthouse Financial Group in the Portland metro area.

Joel Rosabal and Chad Amsden, both 31, were named in the first of two indictments, while the second indictment listed Amsden, Timothy Hills, 30, Misti Wallis, 32, Gerald Wallis, 42, and Jo Schermerhorn, 50.

Rosabal and Amsden were accused of a conspiracy to defraud lending institutions by making false statements to get home loans at an inflated price, resulting in kickbacks.

The federal grand jury indictment also accused Rosabal and Amsden of using various professionals to carry out their conspiracy, including licensed real estate agents, home builders, loan officers and tax preparers.

The lending institutions that were defrauded included First Franklin Corp., Decision One Mortgage, Hyperion Capital, Millennium Funding and Ace Mortgage.

source: http://www.businessweek.com/ap/financialnews/D9FQKISO3.htm