Seven people plead not guilty in property-flipping scheme

Baltimore man admits role in separate case

May 05, 2001|By John B. O'Donnell | John B. O'Donnell,SUN STAFF

As seven people pleaded not guilty in an alleged property-flipping conspiracy that federal prosecutors say cost the government nearly $4 million, a Baltimore man admitted yesterday his role in a separate mortgage fraud case that yielded "gross proceeds" of $1.2 million.

The guilty plea was entered before U.S. District Judge Andre M. Davis by Andrew Ira Bloom, 31. Bloom and a co-defendant, David Glen Brown, who pleaded guilty in March, each face 27 to 33 months in federal prison. They admitted their roles in a fraud and money-laundering scheme involving 140 city properties sold to aspiring investors, using inflated prices, between late 1995 and June 1996. They'll be sentenced this summer.

Operating as mortgage brokers, the two sold packages of houses to buyers at higher prices than the owners were asking, pocketing the difference, according to a statement of facts to which both defendants agreed. They used falsified documents and false information to obtain mortgages for the buyers.

In the newest case, William Otto Schmidbauer, 62, a Perry Hall real estate broker, and six co-defendants pleaded not guilty yesterday in a case in which, prosecutors say, the Federal Housing Administration lost about $4 million on mortgages that financed Schmidbauer deals.

Schmidbauer and 10 co-defendants are charged with conspiracy and making false statements.

The indictment also calls for Schmidbauer to forfeit $690,000 in assets, representing the alleged amount of his gross profit on loans from institutions insured by the Federal Deposit Insurance Corp..

In addition to Schmidbauer, defendants who pleaded not guilty yesterday were Pamela E. Cummings, 50, of Baltimore, an employee of Schmidbauer's real estate firm; two mortgage loan officers, Nancy S. Franklin, 46, of Timonium, and Patricia A. Robinson, 42, of Joppa; three purchasers of Schmidbauer houses, Stephen Todd Schmidbauer, 39, his son; Crystal Sue Perry, 40, Stephen Schmidbauer's girlfriend; and Loretta D. Granum, 49.

Two other defendants, Edward C. Rybczynksi, and his wife, Andrea M. Rybczynski, 39, of Baldwin, owners of a title company, are scheduled for arraignment Friday.

One defendant, Martin Charles Wyatt, 39, who bought houses from Schmidbauer, is being sought on an arrest warrant, according to prosecutor Gregory Welsh.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.