Fraud activities involving the Black Disciples and Black P Stone Nation gangs

More than two dozen people have been indicted following what began as a federal investigation into the laundering of drug money through Chicago real estate transactions, authorities said Wednesday.
The FBI said the investigation began in 2005 when agents and U.S. postal inspectors started looking into alleged fraud activities involving the Black Disciples and Black P Stone Nation gangs. Investigators were targeting the use of drug money to buy and renovate properties, according to the FBI.
A host of loan officers and processors, property managers, real estate investors and straw purchasers were indicted Tuesday for allegedly taking part in a mortgage fraud scheme uncovered by authorities.
Those indicted are expected to appear in court next week, according to the U.S. attorney's office.
The investigation expanded after agents found questionable activity at a mortgage brokerage known as Equity Express and traced property transactions in Chicago, Harvey and Chicago Heights.
According to the indictment, defendant Augustus Wright owned a car company known as South Shore Imports and accepted money from an individual he knew to be a narcotics trafficker. "Individual A wanted Wright to 'clean up' the money by using it to purchase and renovate real estate," the indictment said.
Funds were shared with defendants Nowell Lando and Raymie Henderson, who owned and operated R&P New Development, the indictment said.
Agents and postal inspectors eventually located some 100 properties tied up in mortgage fraud that cost lenders millions of dollars.
Some defendants allegedly recruited others to act as buyers, sometimes telling them they would have no mortgage payments if they agreed to attend closings. Fraudulent loan applications were created, authorities said, and loans paid out to participants who pocketed the money. A number of the properties involved in the scheme were "abandoned or in poor condition," according to court records.