Fourth defendant pleads guilty in mortgage fraud case
A fourth man has pleaded guilty to charges connected to a $4.2 million mortgage fraud conspiracy involving the Cape Coral police chief’s son.
Tyler Forrey, 28, of Cape Coral, pleaded guilty Tuesday afternoon to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering. He and four others entered into plea deals March 3 with federal prosecutors on the same charges in connection to the scheme.
All five face up to 30 years in federal prison, fines up to $500,000, a term of supervised release and up to $200 in special assessments.
According to the Clerk’s Office for the U.S. District Court, Middle District of Florida, no sentencing date had been set for Forrey as of Wednesday. He has been released on his own recognizance, but his travels are restricted and he must undergo a mental health evaluation, treatment or both as directed.
Forrey and the others operated a “cash-out” mortgage fraud conspiracy in Cape Coral from 2007-08 involving eight properties, according to documents from the U.S. Attorney’s Office. The group reported “inflated sales prices to lenders and falsified applications for loans based on the higher prices, then pocketed the excess loan proceeds at closing.”
The documents state that Forrey is tied to wire transfers of $656,219.01, $579,640.34, $391,877.76, $616,250, $426,695.77 and $259,126.68 for loans on six of the properties. He is also connected to a $62,000 withdrawal from a bank account tied to the conspiracy.
Amy Filjones, a spokeswoman for the U.S. Attorney’s Office, Middle District of Florida, said Wednesday that the investigation into the scheme is ongoing.
Troy Bossert, 32, of San Antonio, Texas, also had a plea hearing scheduled for Tuesday but it was continued. A new date for the hearing must be set by Tuesday, according to the Clerk’s Office for the Middle District of Florida.
Stephen Petrovich, 35, and Steven Reese, 32, both of Cape Coral, pleaded guilty March 23 at the U.S. Courthouse in Fort Myers. Petrovich is a former detective from the Cape Police Department and the son of Police Chief Rob Petrovich. They entered their pleas before Magistrate Judge David M. Cohen.
Ryan O’Brien, 34, also of Cape Coral, pleaded guilty March 30.
According to the Clerk’s Office, Petrovich and Reese have sentencing dates set for June 21. O’Brien is scheduled for June 28. All three will go before U.S. District Judge Charlene E. Honeywell.