A federal indictment details how a Texas ring flooded a lender with fake documents to push unqualified borrowers through
A federal grand jury in the Northern District of Texas has indicted four individuals in connection with a multi-year mortgage conspiracy that allegedly produced more than 20 fraudulent home loans totaling approximately $7,339,699, targeting Federal Housing Administration (FHA), Department of Veterans Affairs (VA), and conventional loan programs.
US Attorney Ryan Raybould announced charges September 16 against Shawna Randall (also known as Shawna Porter), Cleophus Turner, Julie Shoumbert, and Maurice Gardner. All four face conspiracy charges involving false statements to a mortgage lending business.
Randall and Turner face an additional three counts each of fraud and false statements.
"These defendants allegedly conspired to corrupt the mortgage process by flooding lenders with fabricated finance and employment information to push through unqualified borrowers," Raybould said.
"We will pursue anyone who deceives federal loan programs, threatens the integrity of our housing system and harms American taxpayers who ultimately bear the cost of fraudulent schemes such as this."
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Inside the alleged scheme
According to the indictment, the conspiracy ran from June 2020 through November 2022, with the defendants working in concert to falsify income records, employment histories, bank statements, and other financial documentation — all funneled through Eustis Mortgage Corporation, operating as Verity Mortgage, to qualify borrowers who could not otherwise meet federal lending standards.
Randall, whose real estate license was inactive during the conspiracy period, allegedly recruited unqualified borrowers and coordinated the production of fraudulent W-2s, pay stubs, employment verifications, and bank statements.
Turner, a loan officer at Verity Mortgage, allegedly submitted those materials as legitimate application files, knowing the information had been fabricated or altered.
Shoumbert and Gardner allegedly supplied fabricated bank statements at Randall's direction, with those documents then inserted into official loan qualification files. The indictment details overt acts spanning properties in Texas and Oklahoma.
Grant Permenter, special agent in charge at the US Department of Housing and Urban Development Office of Inspector General, said the defendants used industry knowledge to sidestep federal safeguards.
"At every stage, any one of them could have stopped these fraudulent transactions, but instead, they allegedly chose to participate," Permenter said.
"Their actions undermined the integrity of the FHA program and resulted in more than $7.3 million in fraudulently obtained loans."
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Federal agencies push back on program abuse
The case illustrates how multi-agency investigations are increasingly catching up with origination-stage fraud, not just downstream servicer misconduct. HUD has already paid partial FHA insurance claims exceeding $493,499 as a result of the alleged scheme.
VA Inspector General Cheryl L. Mason emphasized that the case goes beyond dollar amounts.
"Stopping fraud in the VA Home Loan Program is not just about protecting resources — it's about safeguarding the benefits that our veterans have earned," she said.
"Through our strong law enforcement partnerships and vigilant oversight, we will continue to halt these schemes and hold fraudsters accountable."
The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) also joined the cross-agency response, with Christopher Lane, special agent in charge of FHFA-OIG's Central Region, pointing to the duty of honesty owed by lending institution officers.
The case was investigated by the HUD, VA, and FHFA Offices of the Inspectors General, with prosecution led by Assistant US Attorney Chad Meacham from the Fraud Section.
If convicted, Randall and Turner each face up to five years on the conspiracy count and up to 30 years on each of the three false-statement charges. Shoumbert and Gardner each face up to five years. All four face fines and mandatory forfeiture.
This case has direct relevance for brokers working with FHA and VA lender compliance requirements — industry professionals are increasingly expected to identify document irregularities before application submission, and enforcement agencies have made clear that proximity to a fraud chain carries its own legal exposure.
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