A Fairlawn man is facing conspiracy charges to commit bank and mortgage fraud that led to a total loss of $20 million.
Chris Stickan with the Assistant U.S. Attorneys Office tells AkronNewsNow.com about the allegations against 35-year-old Jason Herceg.
"The first count was a conspiracy to commit bank fraud in connection with a mortgage fraud scheme involving properties in Florida," he said.
Herceg and his business partners allegedly conspired to inflate the value of the property and sell it through the use of "straw buyers."
Stickan says the straw buyers in this case were used to sell their credit to allow a loan to be obtained in their name in order for someone else to take control of the property.
He also discusses the other conspiracy charges against Hercig involving two elderly investors.
"They were unaware that the property itself had been fraudulently inflated, and that money was taken out of that loan to give Mr. Herceg and his buisness partners."
Hercig allegedly sold the Florida property to the individuals for $7 million according to court documents. He is also accused of filing a false tax return in connection with the fraud schemes.
Others charged in the alleged scheme include Andrew Norman and co-conspirator only known as J.C.
The statutory penalties for each of the two conspiracy counts is 5 years in prison and a fine of $250,000 for each count, and the tax charge is a maximum of three years in prison.
The case remains under investigation.