Hampton Woman Pleads Guilty to Role in $161 Million Mortgage Fraud Scheme
Kimberly Johnson, 55, of Hampton, Georgia, has admitted her role in a mortgage fraud conspiracy that spanned more than three years, resulting in the fraudulent approval of approximately 450 mortgage loans totaling $161 million. Many of the loans were insured by the Federal Housing Administration (FHA) and have since defaulted, triggering substantial financial losses and claims against federally backed programs.
According to U.S. Attorney Ryan Buchanan, Johnson participated in a scheme in which fraudulent loan applications were submitted to various mortgage lenders. Homebuyers and mortgage brokers involved in the conspiracy provided falsified information to secure loans for individuals who were unqualified. Johnson’s specific role included altering or fabricating critical supporting documents such as bank statements, pay stubs, and W-2 forms to create the appearance of financial stability for borrowers.
“Kimberly Johnson and her co-conspirators manipulated the mortgage lending process, threatening the soundness of the real estate market in our communities,” Buchanan stated.
Federal investigators detailed how Johnson’s actions, alongside those of other conspirators, led to the approval of hundreds of fraudulent mortgage loans. Many of the brokers who collaborated with Johnson were also part of the conspiracy. The loans were submitted to numerous mortgage lenders, many of which suffered significant losses when the loans defaulted.
Impact of the Fraud
- The fraudulent loans totaled $161 million.
- Many of the loans have already defaulted, leading to claims paid by the FHA.
- The fraud affected federally insured programs, limiting financial resources intended for deserving homebuyers.
Special Agent Jerome Winkle, of the HUD Office of Inspector General, highlighted the scheme’s impact on federal programs, stating, “Fraud against federally funded programs creates significant risks and limits resources available to help hard-working individuals realize the American dream of homeownership.”
Kyle A. Myles, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, added, “The defendant’s actions undermined the safety and soundness of our nation’s financial system.”
Collaboration Among Federal Agencies
The case was investigated by:
- U.S. Department of Housing and Urban Development (HUD) Office of Inspector General
- Federal Housing Finance Agency (FHFA) Office of Inspector General
- Federal Deposit Insurance Corporation (FDIC) Office of Inspector General
- Federal Bureau of Investigation (FBI)
Sean Burke, Acting Special Agent in Charge of the FBI Atlanta Field Office, emphasized the importance of collaboration in prosecuting the case, saying, “We are proud to have worked with our law enforcement partners to hold Johnson accountable for exploiting the residential mortgage market.”
Guilty Plea and Sentencing
Johnson pleaded guilty to one count of conspiracy to defraud the United States. As part of her plea, she has agreed to pay restitution to the victims, including HUD, which insures many residential mortgages.
Johnson is scheduled to be sentenced on April 11, 2025, before U.S. District Judge Sarah E. Geraghty.
