East Texas

CORSICANA - Two Henderson County residents were indicted Thursday by a Navarro County grand jury for first-degree felonies for engaging in organized mortgage fraud.

Darrell L. Marriott, 54, and Kandace Y. Marriott, 51, of Gun Barrel City, were indicted with Karen Hayes, 56, of Kemp, according to a press release from Attorney General Gregg Abbott's office.

Evidence obtained by investigators indicates the defendants, doing business as Way Home & Land, falsified residential loan applications to ensure the buyers' loans were approved by mortgage lenders.

According to prosecutors with the attorney general's criminal prosecutions division, the four-county conspiracy scheme involved predominately low-income purchasers whose residential loans were guaranteed by the U.S. Department of Housing and Urban Development.

Prosecutors said the defendants illegally forged purchasers' signatures, inaccurately completed loan applications and falsified supporting documents, including the buyers' rent payment verification statements, proof of employment and Social Security Adminstration benefits information, according to the press release.

As a result, when the qualified buyers defaulted on their home loans, their mortgage lenders did not suffer financial losses. Instead, HUD had to cover the costs. As a result, investigators believe the defendants' scheme cost taxpayers more than $3 million.

Darrell L. Marriott
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