The real estate blog.

The mortgage fraud scheme that ensnared local sportscaster Dave Fox has reached the top level. A federal indictment implicating Bradley Kitchen and five others was unsealed today.

Accused of recruiting straw buyers to profit from falsely inflated home values in the Provo Riverbottoms neighborhood, this case has gained notoriety not only for the prominence of the individuals involved but the losses involved in the case. Tax values were so skewed, the agency involved with assessments has had to revalue the entire neighborhood.

So far, Dave Fox, a TV sportscaster and Clark Blaisdell have been the most prominent. Today’s indictment reached new levels as a well published medical doctor, David Bolick was indicted as a ringleader. Four other people, Steve Cloward, Ron Clarke, Jeffery Garrett and Rebecca Hadlock were also named. One other straw buyer, Mark Atkin, has pleaded guilty to communications fraud like Blaisdell and Fox.

KSL reported late Tuesday that Dr. Bolick had responded and was shocked with the charges -

We tried calling all of the defendants named in the case; only one, Dr. Bolick would comment. He told us he was shocked and surprised by the indictment. He also said he just found out today about the charges and didn’t even know what he was charged with. Bolick also said he was not guilty of anything.

The defendants are expected to begin the trial process next month and it will be real interesting to see the details of this scheme revealed. As I understand it, this case is a classic “flipping” scheme where properties are over appraised and cash back is received by the buyers. Bradley Kitchen originated the mortgages and the homes were resold among a group of “investors” repeatedly until it finally stopped…a sort of real estate musical chairs with the final bag holder left with an overvalued property, debt in the hundreds of thousands of dollars and criminal charges.