Published: October 17, 2006 11:08 am      

Real estate appraiser pleads guilty in mortgage fraud scheme

JACKSON, Miss. — Loretta Joy Champ, a real estate appraiser, has pleaded guilty to her role in a mortgage fraud scheme in the Hattiesburg and Laurel areas.

Champ entered the plea Monday in federal court in Jackson. No sentencing date was announced.

In March, Michael T. Cox, of the Oak Grove area, and Jacquelyn B. Mosley, of Hattiesburg, each pleaded guilty in the case.

Federal prosecutors said Cox prepared fake financial statements between December 2000 and November 2002, and Mosley prepared false and inflated property appraisals, according to the release.

Ten people allegedly involved in the scam were named in February in a separate federal indictment, which outlines the scheme to inflate appraisals and use fraudulent documents to obtain mortgage loans.

Champ, in her plea, admitted she conspired with Richard Lucas, who was charged separately in the alleged mortgage scheme.

Lucas has pleaded innocent to charges of bank fraud, nine counts of wire fraud and conspiracy to commit bank fraud, wire fraud and money laundering.

U.S. Attorney Dunn Lampton said Champ was employed at J&J Appraisal Services with Mosley. Lampton said Champ admitted that she prepared false appraisals for property to be acquired by associates and clients of Lucas.

Lampton said those appraisals gave the false impression that the properties were worth more than they were. Lampton said the appraisals led banks to lend more money than they would have for the properties.