Ryan K. Buchanan U.S. Attorney | US Attorney's office Northern District of Georgia
Kimberly Johnson has admitted her involvement in a large-scale mortgage fraud scheme that lasted over three years. This operation led to the approval of around 450 mortgage loans based on false documents and misleading information. Many of these loans, insured by the Federal Housing Administration (FHA), have defaulted, resulting in claims being paid.
U.S. Attorney Ryan Buchanan commented on the case: “The defendant and her co-conspirators brazenly manipulated the real estate lending process out of sheer greed.” He emphasized the threat such fraudulent activities pose to community real estate markets and reiterated his office's dedication to prosecuting offenders who exploit the system.
Special Agent-in-Charge Jerome Winkle from HUD’s Office of Inspector General remarked on Johnson’s actions, saying she fabricated documents for over 450 loans to falsely qualify individuals. He stated that such fraud against federally funded programs jeopardizes resources meant for aiding citizens' homeownership aspirations.
Edwin S. Bonano, Special Agent in Charge of FHFA-OIG’s Southeast Region, noted that Johnson’s guilty plea underscores their commitment to holding those accountable who misuse the mortgage system for personal gain. He praised collaborative efforts with law enforcement partners in safeguarding housing market integrity.
Kyle A. Myles from FDIC OIG highlighted Johnson's role in fabricating loan application documents as part of a scheme approving approximately 450 fraudulent mortgages. The FDIC OIG remains focused on investigating acts threatening financial system stability alongside law enforcement colleagues.
Acting Special Agent Sean Burke from FBI Atlanta stressed their resolve to investigate crimes impacting residential mortgage market integrity. He pointed out that Johnson had an obligation to conduct business honestly but chose otherwise, securing unqualified mortgages.
According to U.S. Attorney Buchanan, Johnson was involved in a conspiracy where homebuyers and brokers submitted fraudulent applications to secure funding from lenders. Her contribution included altering or creating fake supporting documents like bank statements and pay stubs, facilitating $161 million worth of fraudulent loans with many already defaulted.
Johnson pleaded guilty to conspiracy charges intending to defraud the United States through this mortgage fraud scheme and agreed to restitution payments including compensating HUD which insures numerous U.S. residential mortgages. Her sentencing is scheduled for April 11, 2025, before Judge Sarah E. Geraghty.
The investigation is being conducted by several federal agencies including HUD OIG, FHFA-OIG, FDIC OIG, and FBI with Assistant U.S. Attorney Alison Prout leading prosecution efforts.
For more information contact the U.S Attorney’s Public Affairs Office via email at USAGAN.PressEmails@usdoj.gov or phone at (404) 581-6016; visit http://www.justice.gov/usao-ndga for additional details about the Northern District of Georgia's U.S Attorney’s Office.
